Forecast of Topline Securities
Topline Securities has estimated an inflation rate of 2 to 2.5% for Pakistan in February.
Food Prices Provide Mixed Signals
The report mentions a 0.4% decrease in food inflation, primarily owing to a steep fall in the prices of tomatoes (-55%), onions (-27%), and potatoes (-21%). Fresh fruit and sugar prices, on the other hand, are expected to witness a rise of 9-15%.
Energy Prices Have Slight Fluctuations
Gasoline and diesel prices have gone up by 2-4%, while LPG prices have decreased by 8%. The electricity rates are unchanged, while a 0.2% fall is expected in the housing, water, and gas rate charges.
Interest Rates Could Be Cut Further
Muhammad Sohail, CEO of Topline Securities, said that interest rates can still be further lowered by an additional 100 basis points.