Pakistan’s inflation rate is expected to increase to 7.4 percent year on year in February 2026, according to market estimates shared by Optimus Capital Management.
This would be the highest inflation reading in the past 18 months. In January, headline inflation stood at 5.8 percent, showing that price pressures are building again.
Analysts say several factors are behind the expected rise. One major reason is the recent increase in electricity tariffs, which directly affects household bills and also raises costs for businesses.
When energy prices go up, companies often pass those costs on to consumers through higher prices of goods and services.
Higher gold prices have also played a role in pushing up the overall inflation figure. In Pakistan, gold is widely purchased for savings and weddings, so price movements can influence the broader consumer price index. In addition, base effects are contributing to the jump, as inflation was relatively low in the same period last year.
Rising inflation creates challenges for both families and businesses. Households face higher living costs, while companies deal with increased operating expenses. It may also influence future decisions by the State Bank of Pakistan regarding interest rates.
Economists say the coming months will be important to see whether inflation continues to rise or stabilizes, depending on energy prices, global trends, and domestic economic policies.