Finance Ministry says prospects of slight hike in inflation in March

ISLAMABAD: The Ministry of Finance has apprehended prospects of slight increase in inflation to 3.0-4.0pc in March before Eid ul Fitr, ARY News reported on Thursday.

The ministry in its monthly economic outlook report today, said that the consumer price index (CPI) inflation would remain stable in current month of February.

“Inflation is anticipated to remain within the range of two to three per cent in February 2025,” the report said. However, there are prospects of slight hike to three to four percent by March,” the report said.

Inflation has eased since last year with CPI coming in at 2.4% in January compared to 24% in the same month last year.

Authorities have credited the downward trend to economic stabilization under a $7 billion International Monetary Fund program secured last summer.

An IMF mission is due to arrive in Islamabad next week for the first review of the global lender’s facility.

“The primary surplus is expected to improve further in the coming months,” the ministry said, pointing to one of the benchmarks identified by the IMF.

The report also said that foreign remittances, a crucial lifeline for Pakistan’s economy, were expected to rise.

“Workers’ remittances recorded robust inflows of $20.8 billion during July-Jan FY2025, marking a 31.7% increase over $15.8 billion last year,” the ministry said.