# Core Inflation Drops to 7.5% in October

> Pakistan's core inflation falls to 7.5% in October, widening the gap between core inflation and policy rate for banks.
- Title: Core Inflation Drops to 7.5% in October · The Express Tribune
- Summary: Pakistan's core inflation falls to 7.5% in October, widening the gap between core inflation and policy rate for banks. Pakistan's core inflation eased to…
- Keywords: pakistan, core inflation, policy rate, central bank, state bank of pakistan, monetary policy, inflation, wheat prices, petrol prices, transport costs, news, Core
- Source: The Express Tribune — https://tribune.com.pk/story/2638308/core-inflation-falls-to-75-in-oct
- Author: Our Correspondent
- Published: 2026-11-02T22:24:53+00:00
- Read time: 1 min
- Topics: pakistan, core inflation, policy rate, central bank, state bank of pakistan, monetary policy, inflation, wheat prices, petrol prices, transport costs, news
## Core Inflation Slows
Core inflation eased to 7.5% in October, the second consecutive month of decline after peaking at 8.8% in August.
## Policy Rate Gap Widens
The difference between core inflation and the policy rate has widened to 4.5% for commercial banks, benefiting them at the expense of borrowers.
## Food Inflation Slows
Food inflation dropped from 8.1% to 7.8% in urban areas and fell to 7.1% in rural regions in October.
## Energy Prices Decline
Energy prices slowed to 10.6% in urban areas and 12.1% in rural areas, the lowest in months.
## Wheat Prices Surge
Wheat prices rose 82% year-on-year in October, prompting government wheat imports of 765,000 tonnes.
## Petrol Prices Jump
Petrol prices increased 42% year-on-year in October, with per-litre cost at Rs379.
## Transport Costs Rise
Transport costs increased 27% year-on-year in October, driven by higher fuel and vehicle taxes.
## Key takeaway

Pakistan's core inflation eased to 7.5% in October, widening the gap with the policy rate to 4.5% for commercial banks.