Finance Ministry Projects Inflation to Drop to 5-6% in January 2026.
The Finance Ministry expects inflation to hover between 5-6% in January 2026 as economic reforms yield results.
Pakistan’s economic stabilization is yielding real results as the Finance Ministry projects inflation to hover between 5-6% in January 2026. This follows a favorable trend in December 2025, where the Consumer Price Index (CPI) showed a slight month-on-month decrease of 0.45% and an annual easing to 5.6%, setting a solid base for price stability.
The Ministry’s latest Monthly Economic Update highlights that prudent fiscal policies and improved supply chains are effectively cooling down price pressures across the country. These structural reforms and the easing of monetary conditions are positioning the economy to sustain its growth momentum throughout FY26.
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