Finance Division forecasts 8-9% inflation for September

Pakistan’s headline inflation may drop to 8-9 per cent in the next two months, according to the finance ministry.

In a recent economic update, the finance division said that the Consumer Price Index (CPI) based inflation in the country has come down to single digits. This is the lowest level recorded in almost 14 months.

Experts had earlier predicted that the inflation will drop to single digits soon with further decline expected in the coming months.

Last month, CPI-based inflation was seen at 9.6 per cent on an annual basis. This represents a massive decline from the from 27.4 per cent recorded in August 2023.

The finance ministry also noted positive indicators in the first two months of ongoing fiscal year in its recently released monthly report, confirming that the industrial output has increased, and big exporting sectors have also recorded notable growth.

Moreover, the current account deficit has shrunk due to strategic measures taken by the government.

The finance division expcts the trajectory to continue in the upcoming months.