Pakistan’s Inflation Forecasted to Hit 7% in September Due to Floods: Key Drivers Explained

 

Pakistan’s Inflation Forecasted to Hit ~7% in September Due to Floods: Key Drivers Explained

Date: 20 September 2025

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What’s Happening

• Ongoing flooding across Pakistan has severely disrupted supply chains for food and essential goods. Wikipedia+1

• Because of these disruptions, analysts forecast that consumer price inflation (CPI) for September 2025 may climb to 6.5%–7% year-on-year. Pakistan Today Profit

• The month-to-month inflation (MoM) is expected to be near 3.1%, which would mark one of the highest monthly increases in over two years. Pakistan Today Profit

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Impact on Citizens

• Prices of vegetables, fruits, staple foods likely to rise sharply due to supply bottlenecks.

• Transportation costs may increase as flooding damages roads and disrupts logistics.

• Low-income households will feel the squeeze more: food forms a larger part of their spending.

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Government & Policy Responses

• Potential interventions: subsidies, price controls, import adjustments, or state procurement to stabilize supply.

• Monitoring by federal and provincial governments of disaster impact and relief efforts.

• The Central Bank or Finance Ministry may issue statements or take steps if inflation exceeds forecasted levels materially.