Pakistan's macroeconomic outlook showed continued signs of cooling as annual Consumer Price Index (CPI) inflation eased to 9.6% in October 2026, down from 10.3% in September, according to the latest figures released by the Pakistan Bureau of Statistics (PBS).

The headline slowdown was primarily driven by a 2.35% drop in perishable food prices, helping lower overall food inflation to 7.74%. However, the State Bank of Pakistan highlighted that inflation remains above its baseline 5%-7% target, with elevated global oil import costs and transport inflation continuing to cloud fiscal projections.