Inflation likely to hover around 5.8%-6.8% in Nov: FinMin

November 27, 2024 (MLN): Inflation is expected to remain within the range of 5.8%-6.8% in November 2024, according to the Finance Ministry's monthly economic report.

That is notably higher compared to MG Research's forecast of a 4.6% yearly inflation rate for the respective month.

Later in December, price gains are seen receding to 5.6% - 6.5% by December.

Pakistan economy is observing a sustained recovery in the ongoing fiscal year.

The first four months have shown better-than-expected improvement marked by receding inflation, a significant increase in remittances and IT exports, sustained external and fiscal sectors, and a downward trend in interest rate.

The recovery across all sectors will support the achievement of the targeted economic outlook in coming quarters.

During Jul-Oct FY2025, CPI Inflation stood at 8.7% against 28.5% recorded the same period last year.

YoY Inflation was recorded at 7.2% in October 2024, compared to 6.9% in the previous month and significantly lower than 26.8% recorded in October 2023.

The significant contributors to inflation include perishable food items (15.9 %), Housing, Water, Electricity, Gas & Fuels (19.2 %), Clothing and Footwear (14.6 %), Health (12.3 %), Restaurants & Hotels (7.9 %), Alcoholic Beverage & Tobacco (6.4 %) and Furnishing & Household equipment maintenance (5.9 %).

Meanwhile, transport observed a decline of 6.1% and non-perishable food items decreased by 1.5 percent.

SPI for the week ended on 14th November 2024, recorded an increase of 0.55% as compared to the previous week. This week, prices of 06 items declined, 21 items remained stable, and 24 items increased

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