Pakistan’s inflation rate decreased to 28.34% YoY in January from 29.66% in December. Despite this slight ease, the central bank maintained borrowing costs at a record high to combat inflation, the highest IN ASIA. This stance coincides with the caretaker government’s adjustments to energy prices to comply with the IMF’s loan prerequisites. The central bank recently updated its inflation forecast for FY23-24 to 23%-25%, up from 20%-22%, with expectations for a price gain decline starting in March.