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Govt Sees Inflation Slowing Down to 12.5-13.5% in June

The Finance Division expects inflation to remain within the range of 13.5-14.5 percent for May 2024, with expectations of a decrease to 12.5-13.5 percent by June 2024.

In its Monthly Economic Update & Outlook for May 2024, the ministry said the inflation outlook for May 2024 continues on a downward trajectory, attributed to elevated inflation levels the previous year and improvements in the domestic supply chain of perishable items, staple food like wheat, and reduction in transportation costs.

The government’s commitment to curbing inflation through stringent administrative measures paints a promising picture for the inflation outlook. A key pillar in this strategy is the bolstered availability of food items, which is crucial for taming inflationary pressures.

By consistently managing supply and demand, the government stabilizes prices and reduces market volatility. In May 2024, petroleum product prices dropped twice, positively impacting the CPI for the month. Lower fuel prices reduced transportation costs, contributing to this favorable CPI trend. The SPI has recorded a decline for the fourth consecutive week which augur well for the CPI outlook, the ministry stated.

The Food and Agriculture Organization’s food price index, a key indicator tracking the prices of globally traded food commodities, registered an increase of 0.3 percent in April 2024 over the revised March level.

The Finance Division said this is the second consecutive monthly increase after a seven-month decline. However, it remained 7.4 percent compared to its value of one year ago.

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ProPK Staff