KARACHI: Inflation may inch over 9 per cent due to monetary expansion and a spike in international commodity prices whereas the current account deficit could remain over half a billion dollar in August, a new report by the Ministry of Finance has stated.
As per monthly economic outlook report for August also predicted around $5.5 billion imports, which have become a key reason behind widening of the current account deficit, again.
The local media outlet recalled that year-on-year (YoY) inflation is expected to fluctuate around 7.6pc – 9.2pc in the month under review, according to the report prepared by the economic advisory wing of the finance ministry.
Inflation had been recorded at 8.4pc in July 2021.
The finance ministry has said that imports of goods and services will be around $6 billion in this month, implying around $5.5 billion imports of goods.
“As a result, the current account would remain in deficit at moderate monthly levels of around $500 million this month,” said the finance ministry, adding that the CAD widened due to growing import volume of energy and non-energy commodities, along with a rising trend in global prices of oil, Covid-19 vaccines, food, and metals.
