Govt Expects Inflation to Remain High in Coming Months in Pakistan.

The Ministry of Finance said that the two massive fuel price hikes witnessed in the month of August 2023.

In its Monthly Update & Outlook for August, the ministry said that the international commodity price outlook is promising and is expected to offset the negative impact of local

It highlighted that the FAO Food Price Index, which tracks international prices of the most globally traded food commodities, stood at 123.9 points in July 2023.

FAO Food Price Index showing a decrease of 11.8 percent as compared to July 2022.

Domestically, the high base effect would provide a little solace to inflation growth.

Massive fuel price hike witnessed in the month of August 2023 and upward adjustment in energy tariffs, would strain the inflationary pressures.

Nevertheless, the expected lagged impact of accumulated monetary tightening, fiscal consolidation efforts of the government.