Pakistan’s Consumer Price Index (CPI) rose 11.8 percent in May from a year earlier, according to data from the Pakistan Bureau of Statistics, marking the lowest rate in 30 months and is lower than the forecasts of the Ministry of Finance.
This figure is the lowest in 30 months and lower than the Ministry of Finance’s forecasts. This figure is published a week before the central bank meets to review its key rate, which has remained at a historic level of 22% for seven consecutive meetings.
Pakistan has been plagued by inflation above 20% since May 2022. Last year in May, inflation soared to 38% as the country carried out reforms under a bailout package of the International Monetary Fund. However, inflation has since slowed.
Month over month, consumer prices fell 3.2%, the largest decline in more than two years.
In its monthly economic report released last week, Pakistan’s finance ministry said it expected inflation to hover between 13.5% and 14.5% in May and decline to 12 .5% to 13.5% by June 2024.
“The inflation outlook for May 2024 remains on a downward trajectory, attributed to high inflation levels (in the previous year) and improvements in the domestic supply chain of perishables, staple foods like wheat and (a) reduction in transportation costs,” the report said.
According to Amreen Soorani, head of research at JS Global Capital, the actual figures are even lower due to a larger drop in food prices. (Reporting by Ariba Shahid in Karachi and Sudipto Ganguly in Mumbai; Editing by Jacqueline Wong and Sohini Goswami)
