Inflation falls to 3.24 per cent in February

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Pakistan’s annual inflation fell to 3.24 per cent in February from 3.96 per cent in January, the Pakistan Bureau of Statistics said on Monday, with the key factor being a fall in fuel prices.

On a month-on-month basis, prices rose 0.92 per cent in February. Average inflation in the period from July to February was 5.45 per cent.

Falling fuel prices were a major contributor to the decline in prices, said Shaukat Khan, the director of the bureau of statistics.

Another factor responsible for the lower inflation rate is the lowering of the interest by the State Bank to a 10-year low in January.

The slash in the interest rate had followed a previous decrease announced in November 2014.

The International Monetary Fund had also predicted that the Average inflation will ease to below 8pc in fiscal year 2014-15 and fall further thereafter, as inflation expectations will be anchored by tight monetary policy and sustainable fiscal policy.

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