The inflation rate in Pakistan jumped 11.7% year-on-year in May 2026 from 10.9% in April, remaining well above the State Bank of Pakistan's 5%-7% target range and marking the highest reading since June 2024. Price pressures intensified across several categories, including food and non-alcoholic beverages (7.9% vs. 7.6%), alcoholic beverages and tobacco (2.3% vs. 2.0%), clothing and footwear (8.8% vs. 6.2%), furnishing and household equipment (5.1% vs. 3.8%), and transportation (36.8% vs. 29.9%). Meanwhile, inflation for housing and utilities remained elevated at 16.8%. The increase largely reflects higher energy costs following the Middle East conflict, with petrol and diesel prices still about 48% and 38% above their pre-war levels, respectively. On a monthly basis, consumer prices grew 0.5% in May, easing from a 2.5% rise in the preceding period.