The ‘necessary groundwork’ has been done to permanently reduce inflation, he told parliament during a discussion on the next budget.
The annual inflation rate dropped to 47.09 per cent in November, down from 48.6 per cent in October and further away from a peak of 75.45 per cent in May, official data showed earlier this month.
Inflation regressed by 28 points compared to May, he said.
Factors responsible for inflation reduction are the lagged effect of monetary policy, that would become more apparent; budget deficit curb; aligning some managed and directed prices in line with the inflation target; and accelerating projects and reforms to raise supply, he was cited as saying by domestic media reports.
The current deficit to national income ratio has declined from 5.5 per cent to below 1 per cent, he said.
The country’s gross reserves surged to $159.4 billion as of December 6, while net reserves have risen to $48.3 billion.
The current account deficit, which was around $56 billion, has fallen to around $8 billion now, he said, adding that structural reforms need to be accelerated to make the drop permanent.
ALCHEMPro News Desk (DS)
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