Pakistan Inflation Slows More Than Expected Amid Record Rate

Pakistan’s inflation pace eased for the fifth straight month as domestic food sup improved and fuel costs fell at a time when the central bank has kept interest rates at a record for nearly a yr. Consumer prices in May rose 11.76% from a yr, according to data rel by the Pakistan Bureau of Stats on Mon. It exceeded a median estimate for a 13.7% gain in a Bloomberg survey and compares with 17.34% inc in Apr. The central bank has kept interest rates at a record 22% since Jun last yr to rein in prices and demand. It will review monetary policy on Jun 10 and has pledged to bring down interest rates to 5%-7% by late next yr. The Pakistani rupee has hovered in a narrow range of 277.8-281.7 per dollar since Jan, stabilizing after a rollercoaster ride where it dropped by about a fifth of its value last yr.