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Economy

Pakistan Inflation Exceeds Forecast, Keeping Central Bank Cautious

6 days ago

Source Summary

Pakistan's inflation rose faster than anticipated in the latest period, prompting central bank officials to remain vigilant. The Middle East conflict poses an additional risk to cost pressures and complicates the economic outlook.

Why it matters

Higher-than-expected inflation constrains the central bank's policy flexibility and raises the risk of sustained price pressures that could erode purchasing power and complicate economic stabilization efforts.

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