Inflation may ease to 23.5-24.5pc in March: finance ministry

The Ministry of Finance has anticipated that inflation will experience a gradual decline from this month primarily due to a decrease in the prices of perishable items. Inflation is projected to hover around 24.5-25.5 per cent in February, with expectations of a further easing to 23.5-24.5pc in March, the ministry said in its Monthly Economic Update and Outlook for February. “Despite the upward adjustment in transportation expenses and gas prices, the inflation outlook for the upcoming month may have a downward trend, primarily due to a decrease in the prices of perishable items on the back of better crops and ease in supplies,” it said. The report further noted that the high base effect would contribute to keeping the inflationary pressure on the lower side. It added that the Food and Agriculture Organisation’s food price index, which tracks the most globally traded food commodities, averaged 118.0 points in January 2024 down by 1.0pc from the December level.