KARACHI: Inflation is projected to hover around 24.5-25.5% in February, with expectations of further easing to 23.5-24.5% in March due to better crops and smooth supply of commodities, the finance ministry said on Thursday in its monthly economic report.

The report comes a day before the Pakistan Bureau of Statistics (PBS) will release February 2024 inflation data, and while Pakistan undertakes reforms linked to a $3 billion Standby Arrangement with the International Monetary Fund (IMF).

Pakistan’s yearly Consumer Price Index (CPI) for January clocked in at 28.3%, the last monthly CPI data before general elections held on Feb. 8.

In January, Pakistan’s central bank held its key rate at 22% for the fifth policy meeting in a row and increased its full-year inflation projections.

The governor of the State Bank of Pakistan said the decision was warranted due to “elevated” inflation - which was 29.7% in December.

He said a rise in the bank’s average inflation forecast for the fiscal year ending in June to 23-25%, from a previous projection of 20-22%, was due to rising gas and electricity prices.