Sri Lanka’s double-digit inflation conquers new heights
2022.12.21 06:09
Sri Lanka’s double-digit inflation conquers new heights
Budrigannews.com – The statistics department reported on Wednesday that the National Consumer Price Index (NCPI) in Sri Lanka decreased by 65 percent year-over-year in November, following an increase of 70.6% in October.
According to a statement released by the crisis-stricken nation’s Department of Census and Statistics, food prices increased by 69.8 percent in November while non-food inflation increased by 60.4%.
For nearly a year, Sri Lanka has struggled with skyrocketing inflation, which was partly sparked by the country’s worst financial crisis in seven decades and an ill-conceived ban on chemical fertilizers last year that has since been lifted.
Dimantha Mathew, head of research at First Capital, stated, “November has shown a faster deceleration than expected and this is likely to continue. However, the easing could be offset by an electricity power increase the government may implement early next year.”
He added that inflation is expected to fall below 60 percent by the end of the year, but that it will return to a single digit level in the third quarter of next year.
Nandalal Weerasinghe, governor of the Central Bank of Sri Lanka, predicted that inflation could fall to 4% to 5% by the end of the next year if the current pattern of monetary policy was maintained.
The NCPI is released every month with a lag of 21 days and measures general retail price inflation across the island nation.
The Colombo Buyer Value List (CCPI), delivered toward the finish of every month, is all the more firmly checked. It demonstrates how inflation is developing in Colombo’s largest city and serves as a lead indicator for prices across the country.
Last month, data revealed that the CCPI decreased to 61% in November.
More UK is mired in debt
Sri Lanka reached a preliminary agreement in September with the International Monetary Fund for a $2.9 billion bailout. However, before the funds can be distributed, the country needs to get its debt under control and organize its public finances.
