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ISLAMABAD: Pakistan’s inflation, measured by the Consumer Price Index (CPI), decelerated to 9.2 per cent in July from 11.07pc a month earlier, mainly due to a slight fall in energy prices, according to data released by the Pakistan Bureau of Statistics on Monday.

The modest slowdown for the second consecutive month suggests that cuts in petrol and diesel prices in early July had provided some relief to households. However, the government has begun raising prices over the past two weeks, which will again accelerate overall inflationary pressures.

In FY26, inflation was recorded at 7.05pc, compared with 4.49pc in FY25. This higher rate was despite a high base effect from the previous year. For FY27, the government has projected an inflation target of 8.2pc.

The slight slowdown in July inflation was largely driven by a fall in transport costs, which declined by 5.24pc from June. Transport charges in July increased by 15.08pc when compared with the same month last year. A slight decrease was noted in gas and fuel charges from the previous month.