SBP clarifies inflation forecast ambiguities

Web Desk — An official note issued by the State Bank of Pakistan (SBP) has clarified media reports in which its average inflation forecast of 7-9% in FY22 is being interpreted as the “inflation target” and compared to the inflation targets of other countries.

It said the SBP’s inflation forecast is for the current fiscal year, FY2021-22.

Pakistan’s government sets an inflation target of 5-7 %. It aims to achieve this over the medium term.

Moreover, the government’s inflation target is anchored on achieving monetary policy over a medium-term horizon, i.e. within 18-24 months, according to the notice.