Pakistan's inflation eases to 11% in June; fiscal-year growth reaches 3.7%

Pakistan's annual inflation eased to 11% in June 2026, down from a two year high of 11.7% in May, although food inflation accelerated to 9.4%. The State Bank of Pakistan's policy rate now stands at 11.5%. Official data showed Pakistan's economy grew 3.7% in the fiscal year ending in June, its fastest pace in four years, though short of target. The International Monetary Fund has warned against premature rate cuts and stressed a data dependent approach. The state of Pakistan's economy and rupee, as Iran's neighbor, affects cross border trade between the two countries.