Pakistan inflation falls to 30-month low in May

Pakistan’s consumer price index (CPI) rose to 11.8 per cent in May 2024 from 17.3 per cent in the previous month and 38.0 per cent in May 2023, the Pakistan Bureau of Statistics revealed data on Monday, as reported by Reuters. This marks the lowest inflation reading in 30 months and falls below the finance ministry’s projections.

However, on a monthly basis, it declined to 3.2 per cent in May 2024 compared to a decrease of 0.4 per cent in the previous month and an increase of 1.6 per cent in May 2023, according to the report.

The news comes just a week before the central bank’s crucial policy meeting where they will review the key interest rate, which has remained at a record high of 22 per cent for the past seven meetings, Reuters added.

Last week, Pakistan’s finance ministry released its monthly economic report, projecting inflation to hover between 13.5 per cent and 14.5 per cent in May and then ease to 12.5 per cent or 13.5 per cent by June 2024.

The actual readings have come in even lower due to a sharper dip in food prices, explained Amreen Soorani, head of research at JS Global Capital.