Inflation to Hover Around 12.5-13.5% in June: Finance Ministry

The Finance Division said the inflation outlook for June 2024 has slightly increased compared to the previous month but remains well below the levels of the same month last year. In its Monthly Economic Update & Outlook for June 2024, the finance division said this rise is primarily due to higher prices of perishable items driven by Eid ul Adha. The report said in response, the government is implementing various administrative, policy, and relief measures to control inflationary pressures. The report noted that by managing supply and demand, the government aims to stabilize prices and mitigate market volatility, presenting a more optimistic inflation outlook. The Food and Agriculture Organization’s food price index, a key indicator tracking the prices of globally traded food commodities, registered an increase of 0.9 percent in May 2024 over the revised April level. This is the third consecutive monthly increase after a seven-month decline. However, it remained down 3.4 percent compared to its value from one year ago. Despite higher prices of perishable items during the month, government measures to reduce transport charges are expected to keep June 2024 inflation within the range of 12.5-13.5 percent, the report said.