KARACHI: Inflation in Pakistan is expected to hover between 13.5% and 14.5% in May and to ease further to 12.5% to 13.5% by June, the finance ministry said on Wednesday in a monthly economic update.

Pakistan has been beset by inflation above 20% since May 2022, registering a high of 38% in May 2023, as it navigated reforms as part of an International Monetary Fund bailout programme. However, inflation has slowed over the past few months.

“The inflation outlook for May 2024 continues on a downward trajectory, attributed to elevated inflation levels previous year and improvements in domestic supply chain of perishable items, staple food like wheat and reduction in transportation costs,” the report said.

Pakistan’s consumer price index for April slowed to 17.3% from a year earlier, the lowest reading in nearly two years and below the finance ministry’s projections for the month.

Going forward, the economy will gain momentum owing to favorable external and domestic economic conditions, the report said.—Reuters