Pakistan’s annual consumer price index inflation was 11.1% in July, the country’s statistics agency said on Thursday, below finance ministry forecasts.

July’s reading marked an easing from 12.6% annual inflation recorded in June and highs of over 30% in 2023.

The monthly inflation rate was 2.1%, the Pakistan Bureau of Statistics said.

The State Bank of Pakistan on Monday cut its key interest rate for the second policy decision in a row, signalling previously soaring inflation was tempering.

The finance ministry this week forecast inflation in July at between 12% and 13%, and between 11.0% and 12.0% in August.

“What’s positive is that this month incorporated the higher petroleum prices and the impact of fiscal consolidation so the downward trend should continue going forward,” said Samiullah Tariq, the Head Of Research And Development at Pakistan Kuwait Investment Company.

But pressure continues and one Islamist party has held protests in recent days and threatened sit-ins in major cities if the government does not tackle rising prices.

Pakistan struck a deal last month with the International Monetary Fund for a $7-billion-loan programme that includes tough measures such as higher tax on farm incomes and electricity prices. This prospect has sparked concern among poor and middle class Pakistanis.