Islamabad: Inflation in the country reached a 16-month low.
According to the Bureau of Statistics, inflation has been recorded at 23.1 percent in February last month, which has opened the way for the State Bank to cut interest rates.
The Ministry of Finance had predicted the inflation rate to be 24.5 to 25.5 percent in February. The main inflation indicators, including food items and non-food items, have seen a significant decline, which shows that inflation is now expected to decrease. The series has started.
According to data from the Bureau of Statistics, the inflation rate has come down to 23.1 percent, which is the lowest rate since November 2022, when the inflation rate was 23.8 percent.
It should be noted that the State Bank has maintained the policy rate at 22 percent which is the highest level since 1972 and since inflation in Pakistan is mostly due to government incompetence and poor governance, it is highly unfair. While the interest rate is higher than the basic rate of inflation, due to which the government loans and interest payments will cross the level of 8.3 thousand billion rupees during the current financial year.
It should be noted that the current average core inflation rate is significantly lower than the policy rate, while the core inflation rate is at the lowest level compared to the previous year, while the government and the State Bank set an annual inflation rate target of 21 percent. was appointed, have failed to obtain.
According to the Bureau of Statistics, the annual inflation rate during July-February was 28 percent, which is much higher than the government estimate.
