Pakistan's slowing inflation masks steep rise in essential prices

Despite slowing inflation, essential prices in Pakistan remain substantially higher than two years ago, creating a disconnect between official statistics and consumer experience. Data from October 2026 shows wheat flour up 47%, petrol up 56.9%, and diesel up 59.5% compared to October 2024, with beef and ghee also rising significantly. Former adviser Dr Ashfaq Hasan Khan attributes pressures to global energy costs, food prices, and Pakistan's petroleum levy, arguing that IMF-demanded interest rate hikes are unsuitable for supply-side inflation.