Pakistan's Inflation Story
Pakistan has experienced significant inflation over the past two
decades, driven by fiscal deficits, energy price increases, currency
depreciation, and supply-side shocks. The 2022-24 period saw
inflation reach historic highs, peaking near 38% in May 2023.
What has been Pakistan's highest inflation rate?
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Pakistan's consumer price inflation reached a historic high of
approximately 38% in May 2023, driven by energy price increases,
currency depreciation against the US dollar, and the aftermath of
the 2022 floods. The annual average for FY2022-23 was around
29.2%.
How does inflation affect savings in Pakistan?
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If your savings return is lower than the inflation rate, you're
effectively losing money in real terms. For example, if you earn
12% on a savings account but inflation is 25%, your real return is
negative. This is why it's critical to invest in instruments that
beat inflation — equities, mutual funds, or high-yield government
securities.
Where does Pakistan's inflation data come from?
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Pakistan's official inflation data is published monthly by the
Pakistan Bureau of Statistics (PBS) in the form of the Consumer
Price Index (CPI). The State Bank of Pakistan (SBP) uses this data
for monetary policy decisions. Our calculator uses historical
annual average CPI data from PBS records.