Inflation Drives More Peshawar Families Into Debt, Survey Finds

PESHAWAR: Rising inflation is putting growing financial pressure on households in Peshawar, with a survey finding that 89% of families have borrowed money to cover their everyday expenses.

The survey, conducted by the Institute of Regional Studies (IRS), also found that 95.1% of households were struggling to repay their loans as the cost of living continued to rise.

IRS Chairman Dr Mohammad Iqbal Khalil presented the findings at a press conference at the Peshawar Press Club on Wednesday. The research covered 462 households in Peshawar, along with focus group discussions and consultations with relevant stakeholders.

Essential costs continue to rise

According to the survey, prices of various essential goods and services have increased by between 35% and 40%. Nearly half of the households in low-income areas, or 48.7%, said they had been severely affected by inflation.

The survey showed that 67.3% of households had experienced an increase in income, but their expenses had risen at a considerably faster rate.

Utility and fuel costs were among the major concerns, with 93% of respondents reporting higher electricity, gas and fuel expenses. Meanwhile, 86.4% said their spending on food had increased.

Many families said they had started purchasing cheaper food products to cope with higher prices.

Healthcare and education under pressure

The rising cost of healthcare was another major issue highlighted by the survey. Around 79.4% of households said they faced difficulties in meeting medical expenses.

Education costs were also affecting family budgets. About 59.1% of respondents said they had delayed school fee payments, while 19.2% reported moving their children from more expensive schools to lower-cost institutions.

Higher fuel costs affect transportation

Dr Khalil said increased petroleum prices had added to the financial burden on households and affected their daily mobility.

According to the survey, petroleum product prices had increased by around 50% since February 2026, while 84.6% of surveyed households reported higher transportation expenses.

The increase in travel costs also changed household behaviour. The survey found that 79.8% of families had reduced trips to markets, while 51.6% had cut travel related to education.

Similarly, 49.2% reported fewer journeys for employment purposes and 37.7% said they had reduced travel for medical needs.

The findings suggest that inflation is affecting several areas of household life in Peshawar, including food, healthcare, education, utilities, transportation and family finances.

Dr Khalil said the impact of rising prices extended beyond food costs and was increasingly influencing household spending decisions and daily activities.