The Pakistan Bureau of Statistics said on Tuesday that consumer price inflation rose 3.2 per cent year-on-year in June, broadly in line with the finance ministry’s projection of 3-4pc issued a day earlier.

On a month-on-month basis, prices increased 0.2pc in June, reversing a 0.2pc decline in May.

The data comes after the State Bank of Pakistan (SBP) kept its key interest rate unchanged at 11pc in June.

The SBP said in its latest monetary policy statement that inflation was expected to show some near-term volatility but gradually stabilise within the 5-7pc target range.

The figures also come weeks after the unveiling of the annual budget, which included new revenue measures and subsidy cuts as part of efforts to secure a long-term loan programme from the International Monetary Fund.

Analysts have warned that higher energy and tax costs could stoke inflation in the second half of the year.

The stock exchange rose 2.3pc to close at an all-time high of 128,475.7 points today, the first day of the new fiscal year.