Pakistan Inflation Eases to 20.7%, Lowest in 2 Years As Economy Struggles

• Annual consumer price index (CPI) inflation dropped to 20.7% in March, the lowest in nearly 2 years and below projections • Inflation has been above 20% since May 2022, hitting a high of 38% in May 2023 amid IMF bailout reforms • GDP shrank 0.17% in financial year 2023 as economic activity stalled due to historic high interest rate of 22%
• Government announced another fuel price hike of 3.5% to Rs289.41 per liter on Sunday • Calls growing for interest rate cut to spur growth as inflation shows signs of slowing