Pakistan’s inflation rate is expected to clock in the range of 9.5-10.5% in August and continue falling in September, the finance ministry said in its monthly economic report on Friday.

Pakistan’s inflation rate rose above 30% in 2023 and has not been in single digits since October 2021.

The finance ministry said July’s consumer price index, which at 11.1% was the lowest level in 32 months, suggested the economy was on track to achieve single digit inflation in the coming months.

Inflation would likely decline further to 9-10% in September, helped by economic stability, the report said.

The State Bank of Pakistan cut rates for two straight meetings from a historic high of 22% to 19.5%, and will meet again to review monetary policy on Sept. 12.

The latest interest rate cut would “keep inflationary expectations well-anchored and will support the sustainable economic recovery in FY2025,” according to the monthly report.

Also, read this

People being defrauded in the name of Islamic Banking, Senate Committee finds

Moody’s upgrades Pakistan’s credit ratings from Caa3 to Caa2

Gas tariff to remain unchanged until December to January: Musadik

In an interview with Reuters this week, central bank chief Jameel Ahmed said recent interest rate cuts in Pakistan have had the desired effect, with inflation continuing to slow and the current account remaining under control, despite the cuts.

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.