Pakistan Experienced A Rise In Consumer Inflation By 0.3% As March Recorded A 7.3% Rate While February Recorded 7%
According to Dawn News, Pakistan experienced a rise in Consumer Inflation in March as compared to February as it rose to 7.3% by 0.3%.
The major drivers of Consumer Inflation are higher energy prices due to the Middle Eastern conflict which the government has passed on to the consumers. This with the addition of further possible fuel hikes has contributed significantly to the rising Consumer Inflation.
The finance ministry also reported that inflation would remain in the range of 7.5pc to 8.5pc in March, citing high energy costs due to the Middle Eastern and West Asian conflict. The State Bank, however, has kept the 10.5% policy rate unchanged in response to rising inflation.
The State Bank of Pakistan has further stated that inflation could remain above its 5-7pc medium-term target range for a few months, even as economic activity gathers pace and rising imports widen the trade deficit.
The good news: the average annual inflation for FY25 dropped sharply to 4.49pc from 23.41pc in the previous year, aided by a high base effect, declining food prices, and lower transport costs. The government has projected an inflation target of 7pc for the current fiscal year.
Meanwhile the government is yet to accept IMF’s proposal for upcoming financial year’s Rs 15.6 trillion Tax Target. More to read about rejection and resistance by Pakistan Government in the linked article in this paragraph.
