Leading Issues in the Economy of Pakistan: Agenda for Reforms Figure 11.4: Trend in the Nominal Wage Index*, Consumer Price Index and Real Wage Index –(2013-14= 100) * of construction workers Source: PBS 11.4 Outlook for Inflation The outlook for inflation for 2022-23 hinges on what happens to the rate of inflation from December 2022 to June 2023. Already, in the first five months it has averaged 25.2 percent. Various forecasts have been made of the rate of inflation. The IMF has projected the rate at 19.9 percent. More recently, the MPC of the SBP has indicated that inflation is likely to remain in the range of 21 – 23 percent, because food prices are likely to escalate due to shortages after the floods. There are a number of factors operating in opposite directions in terms of the impact on inflation: 114