The Reserve Bank says the annual inflation rate fell further to two percent last month, from 2.5 percent in May and fro the high of 5.3 percent in June last year.

Acting governor, Arif Ali, says this was led by lower food and non-alcoholic drinks and clothing and footwear prices.

Ali says as a result the year-end projection remains at three percent.

Foreign reserves rose to $2, 283 million last month.

Ali says on July 20th, foreign reserves reached another all-time high of $2, 307 million.

Ali says looking ahead, foreign reserves are expected to remain adequate until the end of the year.