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Pakistan faces renewed inflation pressure as rising energy costs hit households
Published On Sun, 14 Jun 2026
Asian Horizan Network
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New Delhi, June 14 (AHN) Pakistan is once again grappling with mounting inflationary pressures, with rising food, fuel and utility costs putting renewed strain on households and raising concerns over the sustainability of the country's economic recovery, a report has said.
Official data showed that short-term inflation, measured by the Sensitive Price Index (SPI), increased by 14.75 per cent year-on-year for the week ending June 4, as per Pakistan Observer report.
The rise was largely driven by higher retail prices of perishable food items, highlighting the growing cost-of-living burden faced by consumers across the country.
The resurgence of double-digit inflation comes after a period of relative stability and has reignited fears among millions of Pakistanis already struggling with the aftermath of years of economic turbulence.
Long queues at utility stores, rising public transport fares and soaring electricity bills have once again become common sights, reflecting the pressure on household budgets.
Analysts attribute the latest inflation spike largely to global energy market disruptions linked to escalating tensions in the Middle East.
Instability around the Strait of Hormuz has pushed international oil prices higher, significantly affecting Pakistan's import-dependent energy sector.
Reports indicate that the country's weekly oil import bill increased from around $300 million before the recent regional tensions to nearly $800 million afterward.
The sharp rise in fuel prices has had a cascading effect on the domestic economy. Higher transportation and production costs have translated into increased prices for essential goods and services.
Residents in major cities, including Karachi, Lahore and Islamabad, have reported noticeable increases in commuting expenses and food prices.
Food inflation remains one of the most pressing concerns. Rising fuel costs have increased transportation expenses across agricultural supply chains, leading to sharp price increases for vegetables and other essential food items.
Market reports suggest that the prices of onions, tomatoes, potatoes and poultry products have risen significantly in recent weeks.



