Low inflation may be misleading

Low inflation may be misleading

Inflation in Pakistan has shown notable moderation in the early months of FY26, offering policymakers a degree of relief after several years of severe price instability. According to official data, headline inflation has remained within the State Bank of Pakistan's (SBP) medium-term target range of 5-7% during July-November FY26. This marks a significant departure from the double-digit inflation that dominated much of FY23 and FY24 and signals t…