Pakistan's Inflation Eases: Economic Outlook Improves

Pakistan's inflation rate is anticipated to decrease to 5.8%-6.8% in November and further to 5.6%-6.5% in December, according to the finance ministry. This follows a 250 basis points interest rate cut in November to stimulate the economy. Inflation had reached 7.2% in October, down from nearly 40% in May.

In a significant economic update, Pakistan's finance ministry has projected a continued decline in the country's inflation rates, estimating a decrease to between 5.8% and 6.8% for November.

Anticipations for further moderation are expected, with December rates projected to fall between 5.6% and 6.5%. This optimistic outlook follows a decisive policy move by the South Asian nation, which saw a reduction in interest rates by 250 basis points earlier this month.

The measure aims to fuel economic growth amid a marked decline in inflation from its peak at nearly 40% in May 2023 to 7.2% in October.

(With inputs from agencies.)