(CTN News) – According to the monthly economic report released by the finance ministry on Wednesday, the CPI inflation is projected to hover around 27.5-28.5% in December 2023.
However, it is expected to gradually decrease to 24-25% in January 2024. Despite the upward revision of administered prices, the inflation outlook for the remaining months of FY2024 is anticipated to remain at a moderate level.
This can be attributed to factors such as a stable exchange rate, controlled aggregate demand, improved supply position, a decline in international commodity prices, and a favorable base effect.
This high level of inflation has been primarily driven by the significant increase in gas prices, which have had a cascading effect on various sectors of the economy.
The rise in transportation costs has led to higher prices for goods and services, putting a strain on consumers’ purchasing power.
However, the recent decrease in petrol and diesel costs is expected to provide some relief to the general public. With lower fuel prices, transportation expenses for individuals and businesses will be reduced.
This, in turn, will have a positive impact on production costs, as companies will spend less on transporting raw materials and finished goods.
Moreover, regional governments have recognized the need to address the inflationary pressure caused by high gas prices.
They have taken proactive measures to enforce reduced fares for public transportation and freight charges. By aligning these costs with the lowered fuel prices, the burden on consumers and businesses will be further alleviated.
These efforts to mitigate the impact of inflation are crucial for maintaining economic stability and ensuring that the general public can afford essential goods and services.
By countering the inflationary strain caused by elevated gas prices, the decrease in fuel costs will help to stabilize prices and support economic growth.
In conclusion, the current decrease in petrol and diesel costs is expected to have a significant influence on the general public by reducing transportation and production expenses.
The efforts made by regional governments to enforce reduced fares for public transportation and freight charges will further alleviate the inflationary pressure. These measures are essential for maintaining economic stability and ensuring that the impact of high gas prices is mitigated.