Sri Lanka national inflation reaches 70.2-pct in August

ECONOMYNEXT – Sri Lanka’s nation-wide inflation rose to 70.2 percent in August 2022 accelerating from 66.7 percent a month earlier, data from the state statistics office showed.

The National Consumer Price Index grew 2.5 percent in the month of August with food prices rising 1.7 percent and non-foods rising 3.2 percent.

Sri Lanka’s rupee collapsed from 182 to the US dollar to 360 after two years of money printing to target an output gap (stimulus).

Private credit growth turned negative from around June and attempts are being made to check the deficit.

However services and other items in the index usually continue to grow as the price structure of the country adjusts.

Sri Lanka’s widely watched Colombo Consumer Price Index 64.3 percent in the same month. (Colombo/Sep21/2022)