ISLAMABAD, Pakistan — Pakistan’s latest national household survey shows food and housing costs tightening their grip on family budgets as Pakistan inflation keeps everyday essentials expensive, with those categories absorbing about 63% of monthly spending, Jan. 1, 2026.
The Pakistan Bureau of Statistics said the fully digital Household Integrated Economic Survey (HIES) 2024-25 was conducted from September 2024 through June 2025, covering more than 32,000 households nationwide. Results were released after review by a technical committee, and the agency says full reports are available online.
Pakistan inflation is reshaping spending priorities
According to the survey highlights, food accounts for 37% of household consumption, while housing and fuel — including electricity and gas — add another 26%. That leaves limited room for nonessential spending: education, health and recreation together make up about 7% of total outlays, with education at roughly 2.5% and health near 3.4%.
The same dataset shows consumption rising faster than incomes over the past six years. Average monthly household income is reported at Rs82,179, while average monthly consumption is Rs79,150 — up from Rs41,545 and Rs37,159, respectively, in the previous cycle. The gap is sharper across income groups: the poorest 20% reported far lower monthly income than the richest 20%, underscoring how Pakistan inflation pressure can feel heavier for lower- and middle-income families.
Pakistan inflation looks cooler in the CPI, but households still feel the squeeze
Headline inflation has eased compared with the crisis period, but the survey’s spending breakdown suggests essentials still dominate. Consumer price inflation slowed to 5.6% year over year in December 2025, a dramatic drop from the 2023 spike, even as policymakers continue to watch core pressures and utility costs.
Pakistan inflation in context: what changed since the 2023-24 surge
The HIES findings land after a turbulent stretch. Reuters reported Pakistan’s annual inflation hit nearly 38% in May 2023, a record at the time, before moderating later that year. Earlier Reuters reporting on the 2023 inflation peak shows how quickly prices accelerated during the balance-of-payments crunch.
By July 2023, inflation had eased for the first time in months, though it remained elevated and widely felt. A 2023 Al Jazeera report on easing inflation highlighted that cooling did not immediately translate into relief for households facing food and energy costs.
Inflation was still high into early 2024: a Reuters report from January 2024 put year-on-year CPI near 30% for December 2023, reflecting the lag between price shocks and household recovery.
At the HIES launch, Planning Minister Ahsan Iqbal said, “Food inflation and rising utility prices consumed most of their income, leaving little room for other expenses,” pointing to why spending is clustering around essentials even as the broader inflation rate cools. A separate government briefing also noted improvements in internet access and other social indicators alongside the economic snapshot. The official PID release on the HIES 2024-25 launch and the Pakistan Bureau of Statistics’ HIES portal outline those findings, while Business Recorder’s coverage of the launch describes the survey as a major new evidence base for policymaking.
