This paper explores the relationship between inflation and relative price variability (RPV) by using disaggregated CPI data for Pakistan. Three methods have been used to assess the functional form and stability of the relationship between inflation and RPV; (a) visual assessment through scatter plots; (b) rolling regression analysis, and (c) Bai-Perron multiple structural break tests. [SBP No. 44]. URL:[http://www.sbp.org.pk/publications/wpapers/2012/wp44.pdf].