ISLAMABAD (Reuters) – Pakistan’s consumer price index (CPI) rose 11.8% year-on-year in May, the lowest level in 30 months and below the finance ministry’s forecast, data from the Pakistan Bureau of Statistics showed on Monday.
The lowest reading came a week before the central bank meets to review key interest rates, which have remained at a record high of 22% for seven consecutive policy meetings.
Pakistan has been plagued by inflation of over 20% since May 2022. However, inflation has since slowed.
Consumer prices fell 3.2% from the previous quarter, the largest decline in more than two years.
In its monthly economic report released last week, Pakistan’s Finance Ministry said it expected inflation to hover between 13.5% and 14.5% in May, before falling to 12.5% to 13.5% by June 2024.
“The outlook for inflation in May 2024 continues to trend downward due to higher inflation levels in the previous year and improvements in domestic supply chains for staples such as perishables, wheat and (a) lower transportation costs,” the report said.
Amreen Soorani, head of research at JS Global Capital, said the actual reading was even lower due to a sharp fall in food prices.
