Clarification on Inflation target and forecast

Karachi, November 22, 2021 (PPI-OT):In some sections of the media, SBP’s average inflation forecast of 7-9% in FY22 is being interpreted as the “inflation target” and being compared to the inflation targets of other countries. This is incorrect. SBP’s inflation forecast represents our projections for the current fiscal year.

On the other hand, Pakistan’s inflation target is set by the Government and is 5 – 7 %. This target is to be achieved over the medium term. Monetary policy is anchored on achieving the government’s inflation target over the medium term, i.e. over the next 18-24 months.

For more information, contact:
Chief Spokesman,
State Bank of Pakistan (SBP)
Central Directorate
I.I. Chundrigar Road, Karachi, Pakistan
Tel: +92-21-111-727-111
Tel: +92-21-39212562
Fax: +92-21-39212433 – 39212436

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