Islamabad: Pakistan’s headline inflation is projected to hover around 13.5-14.5 percent in May 2024 and will ease further in coming months, Finance Division said.

In its ‘Monthly Economic Update and Outlook’, Ministry of Finance said inflation outlook for May 2024 continues downward, attributed to elevated inflation levels previous year and improvements in domestic supply chain of perishable items, staple food like wheat and transportation costs. “Inflation is anticipated to remain within range of 13.5-14.5 percent for May 2024,” read report. “Nonetheless, there are prospects for gradual easing, with expectations of decrease to 12.5-13.5 percent by June 2024.” As per monthly outlook, government’s commitment to curbing inflation through stringent administrative measures paints promising picture for inflation outlook.

“SPI has recorded decline for fourth consecutive week which augurs well for CPI outlook,” it noted. “GDP growth is elevating while inflation rates are on decline with positive primary balance, reflecting effectiveness of recent fiscal consolidation efforts,” it noted. On other hand, Large Scale Manufacturing sector experienced slight contraction but has shown improvement compared to previous year. “Economic outlook is promising as industrial activities are gradually improving, inflation is on downward trajectory and external sector is stable. Going forward, economy will gain momentum in coming months of this fiscal year,” it said.