Govt Expects Inflation to Fall Below 9% in September  

The government expects inflation to remain within the range of 8-9 percent in September and October, down from 9.6 percent in August 2024.   In its Monthly Economic Update & Outlook for September, the finance division highlighted that CPI inflation receded to its lowest in 34 months in August 2024.    The report also highlighted that LSM is now regaining its footing and major exporting sectors show readiness to scale up production. This recovery is expected to be bolstered by a favorable external environment, a stable exchange rate, and declining inflationary pressures.    It further said that an accommodative monetary policy stance, improved investor confidence, and the global market recovery, will provide additional support to foster sustainable industrial growth. The government’s commitment to fiscal consolidation will contribute to improved fiscal accounts. For agriculture, the outlook of Kharif 2024 production, the weather being a critical factor, will pave the way for productivity, the report noted.   On the external front, the government expects exports and imports to increase in momentum. In September 2024, the exports are likely to remain within the range of $2.5-3 billion, imports $4.5-5.0 billion, and workers’ remittances $2.7-3.2 billion.