Yet, it is anticipated that Sri Lanka’s inflation will drop significantly to 5.5 percent in 2024, even though further tightening helps to reanchor inflation expectations. According to the bank, inflation in Pakistan is expected to rise from 12.2 percent in 2022 to 27.5 percent this year and 15.0 percent the next year.
According to the research, South Asia’s inflation rate will only decrease slightly from 8.2% in 2022 to 8.1% this year, with India accounting for the most of the decrease. In India, the headline inflation rate is anticipated to fall to 5% this year and 4.5% in 2024.
Inflation in Pakistan is expected to rise from 12.2% in 2022 to 27.5% this year and 15.0% the next year, according to the bank.
The Asian Development Bank predicts that Pakistan’s average inflation will be greater than Sri Lanka’s during the current fiscal year (FY23).
The bank predicted that South Asia’s inflation will continue to be high, driven by Pakistan and Sri Lanka, in its most recent study, “Asian Development Outlook (ADO) April 2023.”