Islamabad, Pakistan – Web Desk (May 16, 2026): Pakistan has witnessed a record surge in short-term inflation, with the Sensitive Price Indicator (SPI) rising 14.52 percent year-on-year for the week ending May 14, according to official data.
The Pakistan Bureau of Statistics reported a weekly increase of 0.47 percent in the SPI, indicating that inflationary pressure remains persistent despite tight monetary policy and economic slowdown. Soaring prices have severely strained household budgets, with citizens accusing the government of failing to control the situation.
Annual price increases include petrol at 64.23 percent, diesel 61.61 percent, wheat flour 57.56 percent, lowest-tier electricity bills 52.58 percent, LPG 48.34 percent, onions 50.06 percent, and tomatoes 40.66 percent.
Global Tensions Fuel Local Prices
Economists attribute the spike to ongoing tensions between Israel, the United States, and Iran, which have pushed up global oil and shipping costs. These effects have reached Pakistan’s food and transport sectors.
Dr. Jazib Mumtaz, an economist affiliated with the Institute of Business Administration (IBA), told media that inflation is primarily driven by supply chain disruptions and rising transport costs. “Higher fuel prices increased freight costs, which pushed up the prices of imported goods,” he said.
He added that uncertainty in the region has fueled public fear and hoarding tendencies, further accelerating price increases. Dr. Mumtaz urged the government to reduce the petroleum development levy to provide relief to citizens.
Weekly Price Surge
On a weekly basis, tomatoes recorded the highest increase at 22.13 percent, followed by wheat flour (4.94 percent), diesel (3.76 percent), and petrol (3.73 percent). While chicken, eggs, and pulses saw marginal declines, the decreases were insufficient to offset overall inflationary pressures.
Warning Ahead
Brokerage house Topline Securities has warned that Pakistan’s Consumer Price Index (CPI) could reach 11 to 11.5 percent in May 2026 – the highest level in 23 months.
Experts warn that if the current trend in fuel, electricity, and imported goods prices continues, life could become even more difficult for middle and low-income groups in the coming months.
