Finance Ministry projects June inflation between 3 and 4 percent

ISLAMABAD: The inflation rate in June, as measured by the Consumer Price Index (CPI), is expected to be between 3 and 4 percent, according to the Ministry of Finance in the monthly economic review report.

The Ministry of Finance had expressed concern last month about the growth of large-scale industries (LSM), expressing fears of an increase in inflation during May and June.

The year-on-year inflation rate in May 2025 was at its highest level since December, indicating a resumption of inflation after a gap of several months.

According to data released by the Pakistan Bureau of Statistics, the inflation rate in May was 3.46 percent, the report said, adding that the inflation rate for June 2025 is expected to be between 3 and 4 percent.

The report also said that the situation of large industries looks positive in the coming months, based on indicators such as cement sales and vehicle purchases.

Sales of cars, sport utility vehicles (SUVs), pickups, and vans reached 14,762 units in May, showing a 35% year-on-year and 39% month-on-month increase.

However, according to the Ministry of Finance, the performance of LSM in April 2025 was mixed, with an increase of 2.3% year-on-year but a 3.2% month-on-month decline.

The report further said that the increase in credit to the private sector reflects the improvement in output and restoration of investor confidence.

Regarding the current account, the report said that the external account position has improved during the July-May period of the fiscal year 2024-25, thanks to an increase in remittances and exports.

According to the report, the current account is expected to remain in surplus during the fiscal year 2025, thanks to an increase in remittances and exports.

The report on the agricultural sector said that the use of quality seeds and mechanized cultivation is expected to increase agricultural production.