뉴스노믹스 AJAY ANGELINA 기자 |
Pakistan's Consumer Price Index (CPI) based inflation was recorded lowest at 17.3% year-on-year in April - the lowest in nearly two years and well below the government's expectations, showed by Pakistan Bureau of Statistics (PBS) on Thursday May 2,2024.
“This is the lowest reading in the last 23 months after May 2022,” said Mohammed Sohail, CEO of Topline Securities.
Pakistan economy is continually battling with lowest inflation showcase topping 20% since May 2022, peaking at a staggering 38% last May. The recorded high inflation rates coincided with the reforms implemented as part of an International Monetary Fund (IMF) bailout program.
The data presents more positive signs as month-on-month inflation also went down 0.4% in April, marks the first negative growth since June 2023, suggesting that inflation might be on a downward trend.
Pakistan Bureau of Statistics (PBS) latest data showcase July-April average inflation settled at 25.97% compared to 28.23% in the same period last year.
“Pakistan’s CPI-based inflation is around 18.5-19.5% in April 2024, and will slow down further in the coming months,” forecasted by the Ministry of Finance in its ’Monthly Economic Update and Outlook’ report on Tuesday.
“April 2024 inflation rates has been on a downward trajectory based on the favorable effects from the previous year and improvements in the domestic supply chain of essential items” said the Ministry of Finance in Pakistan.
The inflation outlook “appears moderate as the government is determined to reduce inflation by actively taking strict administrative measures,” according to the Finance Division.
“Pakistan’s Inflation is projected to hover around 18.5- 19.5% in April 2024. However, there are expectations of a gradual easing further to 17.5-18.5% in May 2024.”
The State Bank of Pakistan is maintaining status quo held its key interest rate at a high of 22% as the IMF approved $1.1 billion loan installment before on the basis of previous agreed program.
Pakistan bank’s monetary policy committee believes that the continued tight monetary policy is necessary to bring inflation down to a more manageable and convenient level.
