KARACHI: Inflation in Pakistan is expected to clock in around 29-31% in September, the Ministry of Finance said in its monthly report on Thursday.
It added that oil price pressures and the adjustment in energy prices meant the inflation outlook would remain uncertain, but was expected to remain on a downward trajectory, especially from second half of the current fiscal year.
The Consumer Price Index (CPI) based inflation is expected to hover around 29%-31% for September, the ministry stated in its monthly economic outlook.
“The impact of double-digit based effect is a relief to the September inflation; however, its impact seems to have minimized owing to the major increase in fuel price in the month of September 2023.”
“Together with this, the upward adjustment in energy tariffs is further likely to intensify inflationary pressures in the coming months, as these price adjustments are expected to place an additional burden on transportation costs, essential items, and services.”
The Food and Agriculture Organisation’s (FAO) price index, which tracks the most globally traded food commodities, averaged 121.4 points in August 2023 against 124 for the previous month.
