Pakistan Fights Inflation with Central Bank's Policy Shift

Pakistan's inflation rate rose to 7.2% in October, up from 6.9% in September. This marks a decrease from last year's peak of 38%. The central bank is expected to cut the interest rate further to support economic recovery as inflationary pressures ease.

Pakistan's annual inflation rate ticked up to 7.2% for October, rising from September's 6.9% level, according to data from the Pakistan Bureau of Statistics released on Friday.

The increase appears moderate compared to last year's historic high of 38%, and comes as the central bank prepares for a policy rate meeting next week, currently at 17.5%. A Reuters poll suggests a rate cut is forthcoming, with authorities aiming to rejuvenate a fragile economy amid easing inflation.

The month-on-month inflation rose by 1.2%, while the government's fiscal year average from July to October came in at 8.7%, lower than the International Monetary Fund's projection of 9.5%.

(With inputs from agencies.)