In Sri Lanka inflation has reached 70 Percent
September 28, 2022
In August 2022, Sri Lanka's inflation rate was 70.2 percent.
Important information
In August, Sri Lanka's inflation rate rose to 70.2 percent. In July, the country's rate was 66.7 percent.
The National Consumer Price Index (NCPI) increased 2.5 percent in August, with food prices increasing 1.7% and non-food prices increasing 3.2%.
Non-food inflation rose to 57.1 percent in August, up from 52.4% in July. This is primarily due to an increase in electricity tariffs.
However, monthly prices have dropped to 3.2 percent from 6.7 percent in July.
Core prices, which exclude volatile items such as food, energy, and transportation, have risen from 57.3 percent in July to 60.5 percent in August.
Food prices have risen by 84.6 percent, compared to 82.5 percent in July.
However, price changes on a monthly basis have decreased from 4.6 percent in July to 1.7 percent.
If global commodity prices remain stable, inflation in Sri Lanka is expected to peak in September before declining thereafter.
Sri Lanka's economic situation
Because of the foreign exchange crisis, Sri Lanka declared its international debt default in mid-April of this year. The country currently owes 51 billion USD in foreign debt, 28 billion of which must be paid by 2027. Sri Lanka is one of the top five countries in terms of food price inflation. It trails Zimbabwe, Venezuela, and Turkey. Sri Lanka's 22 million people are facing food and medicine shortages after currency fell to record lows, halting imports. Its economy shrank by 8.4% in the three months to the end of August. The country's current economic crisis is attributed to financial mismanagement and the negative impact of COVID-19 on the tourism sector.
