Unexpected Inflation Surge Shocks Pakistan's Economic Forecast
Pakistan's Consumer Price Index increased by 3.5% in May compared to the previous year, surpassing the Finance Ministry's expected 1.5-2% range. The Statistics Bureau reported a month-on-month decrease of 0.3% in May, following another 0.3% rise in April year-on-year.
- Country:
- Pakistan
Pakistan's economic landscape experienced an unexpected jolt as the Consumer Price Index (CPI) rose by 3.5% year-on-year in May, as announced by the country's Statistics Bureau on Monday. This increase exceeds the Finance Ministry's forecasts, which estimated inflation to remain between 1.5% and 2% for the month.
The Statistics Bureau further detailed that May witnessed a 0.3% decrease in prices compared to April, indicating a month-on-month deflationary trend. This revelation comes after the CPI recorded a 0.3% year-on-year increase in April.
The divergence between the bureau's findings and the finance ministry's expectations may prompt a re-evaluation of economic strategies to address and manage inflationary pressures in the country.
(With inputs from agencies.)
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