Finance Ministry predicts inflation to decrease to 23.5-24.5% in March


The Ministry of Finance predicts a gradual decrease in inflation starting this month, mainly due to lower prices of perishable goods. Inflation is expected to be around 24.5-25.5% in February, with a further decline to 23.5-24.5% in March. Despite higher transportation and gas costs, inflation is expected to decrease due to better crop yields and increased supply of perishable items. The report also mentions that the Food and Agriculture Organization’s food price index decreased by 1.0% in January. This update comes just before the release of inflation data by the Pakistan Bureau of Statistics and as Pakistan implements reforms under a $3 billion IMF Standby Arrangement. In January, the State Bank of Pakistan maintained the key rate at 22% and raised the full-year inflation forecast to 23-25% due to higher gas and electricity prices.


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