Inflation is expected to hover between 13.5 to 14.5 per cent in May and to ease further to 12.5 to 13.5pc by June, according to a monthly economic update from the finance ministry on Wednesday.

The country has been beset by inflation above 20pc since May 2022, registering a high of 38pc in May 2023, as it navigated reforms as part of an International Monetary Fund’s bailout programme.

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However, inflation has slowed over the past few months. The consumer price index for April slowed to 17.3pc from a year earlier, the lowest reading in nearly two years and below the finance ministry’s projections for the month.

“The inflation outlook for May 2024 continues on a downward trajectory, attributed to elevated inflation levels previous year and improvements in domestic supply chain of perishable items, staple food like wheat and reduction in transportation costs,” the report said.

It added that going forward, the economy will gain momentum owing to favourable external and domestic economic conditions.