Overview
- Pakistan’s consumer price index rose to 11.7% year on year in May, the Pakistan Bureau of Statistics reported Monday, the fastest pace in nearly two years.
- Core inflation in urban Pakistan — measured as non-food, non-energy — climbed to 9.0% year on year, while transport and housing costs surged and hit the poorest households hardest.
- South Korea’s CPI rose to 3.1% in May with petroleum products up about 24%, a jump the Bank of Korea says keeps the case for a near-term rate increase on the table.
- Policymakers and markets are shifting away from easing: the State Bank of Pakistan raised its policy rate by 100 basis points to 11.50% in April and CME FedWatch now shows at least one Fed hike priced by January 2027.
- Analysts warn that sustained oil near $90 per barrel would lift inflation across other importers, widen fiscal and current account gaps, and could slow growth in India and other emerging markets.