Consumer Price Index (CPI)-based inflation in Pakistan for October has been projected at 27%-29%, the finance ministry said in its monthly economic report on Tuesday.
In its latest ‘Monthly Economic Update and Outlook’ report, the finance ministry anticipated inflation will be lower contained compared to the elevated levels observed in the first quarter of FY2024.
The development comes on account of several factors including stability in international food price trends, as reported by the FAO (Food and Agriculture Organization).
“While certain food categories, like vegetable oils, dairy and meat prices witnessed decline, while others, including sugar and cereals, recorded increase.
“However, these fluctuations balanced out, resulting in an overall index value of 121.5 points, nearly identical to August 2023,” said the report.
On the domestic front, the interim government’s decision to reduce petrol and diesel prices consecutively in two instances, amid a decline in international markets and a stronger domestic currency, is expected to mitigate the inflationary pressures in the country, noted the report.