GOVERNMENT EXPECTS INFLATION TO EASE TO 17.5-18.5% IN MAY
GOVERNMENT EXPECTS INFLATION
The Finance Division expects inflation to ease to 17.5-18.5 percent in May 2024 while it is projected to hover around 18.5-19.5 percent in April 2024.
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In its Monthly Economic Update & Outlook for April 2024, the finance division said inflation outlook for April 2024 continues a downward trajectory, attributed to the favorable base effect from the previous year and improvements in the domestic supply chain of essential items.
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The report noted that the inflation outlook appears moderate as the government is determined to reduce inflation by actively taking strict administrative measures.
Increasing crude oil prices in the international market have prompted the government to raise domestic petrol prices. The rise in petroleum prices is expected to be offset by the government initiative to reduce wheat flour prices and administrative measures, it added.
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The report mentioned that the Food and Agriculture Organization’s food price index registered an increase of 1.1 percent in March 2024 over the revised February level. The increase was observed in vegetable oils, dairy products, and meat while a decline was recorded in sugar and cereals.
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