2024

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Pakistan’s inflation slowed to 17.3 per cent in April


Pakistan inflation

ISLAMABAD: The inflation that has hit the public badly since the past few months is easing as Pakistan’s consumer price inflation slowed to 17.3 per cent in April from a year earlier, according to the latest numbers released by Pakistan Bureau of Statistics (PBS).

The economy had been battling with inflation topping 20 per cent since May 2022, peaking at a staggering 38 per cent last May and these skyrocketing inflation rates coincided with the reforms implemented as part of an much-needed International Monetary Fund (IMF) bailout programme.

As per the latest data, July-April average inflation settled at 25.97 per cent compared to 28.23 per cent in the same period last year.

The Ministry of Finance on Tuesday, in its “Monthly Economic Update and Outlook” report, forecasted that CPI-based inflation to be around 18.5-19.5 per cent in April 2024, and slow down further in the coming months,

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The ministry said the inflation outlook for April 2024 has been on a downward trajectory mainly because of the favourable base effect from the previous year and improvements in the domestic supply chain of essential items.

The inflation outlook “appears moderate as the government is determined to reduce inflation by actively taking strict administrative measures”, as per the Finance Division.

“Inflation is projected to hover around 18.5- 19.5 per cent in April 2024. However, there are expectations of a gradual easing further to 17.5-18.5 per cent in May 2024.”

Even before the IMF approved a $1.1 billion loan instalment under a previously agreed-upon programme, State Bank of Pakistan maintaining staus quo held its key interest rate at a high of 22 per cent. 

 The bank’s monetary policy committee believes this continued tight monetary policy is necessary to bring inflation down to a more manageable level.

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