The CPI (Consumer Price Index) is the measure used to track inflation. It prices a fixed "basket" of everyday goods and services — atta, petrol, rent, electricity — and reports how much that basket's cost has risen over a year.

When you read "inflation is 11.7%," that figure is the CPI rising 11.7% year-on-year. Because different categories rise at different speeds, your own cost of living can be higher or lower than the headline number.

In Pakistan: the CPI is published every month by the Pakistan Bureau of Statistics.

Example (PKR): in May 2026, transport costs in the CPI rose 36.8% year-on-year, even though the headline rate was 11.7% — so a commuter's personal inflation was far higher.

Don't confuse it with: the policy rate — the State Bank's interest-rate tool used to fight inflation.

Related terms: Inflation
Where you'll meet this: What is inflation