Pakistan's Inflation Forecast: A Brief Respite Ahead

Pakistan's Finance Ministry anticipates inflation to drop to 1.5%-2% year-on-year in May but expects it to rise again to 3%-4% in June. For the fiscal year ending June 2025, the central bank projects average inflation to be in the range of 5.5%-7.5%.

Pakistan's Finance Ministry has forecasted a brief easing of inflation, predicting it will decline to between 1.5% and 2% year-on-year in May. However, they warn that it will likely rise again to 3%-4% in June, according to their monthly economic report released on Thursday.

The central bank, in its latest half-yearly report, provided projections for the fiscal year ending June 2025, expecting average inflation to range between 5.5% and 7.5%. This prediction comes as the country navigates through economic challenges.

The fluctuation in expected inflation rates underscores the volatile economic environment, calling for strategic measures to stabilize the economy and ensure sustainable growth for the future.

(With inputs from agencies.)