Sri Lanka inflation rises to 6.1% in August

Business
By Editor_1
-economynext.com
0

COLOMBO – Sri Lanka’s national inflation rose to 6.1% in August 2020 with consumer prices in the month rising 0.4%, data from the State statistics office showed.

Sri Lanka’s National Consumer Price Index grew to 137.8 points in August from 137.3 points in July with food prices rising 0.5%.

Sri Lanka’s food prices have risen 13.2% in the 12 months to August 2020 accelerating from 12.9% in July.

Non-foods grew 1.1% in the 12-months.

The Colombo Consumer Price Index, rose at a slower pace of 4.8% in the 12-months to August.

Sri Lanka printed unprecedented volumes of money in March and April, driving a soft-peg with the US dollar close to Rs200.

But the country is under an import embargo not seen since 1971.

Private credit contracted after April and the central bank bought dollars preventing the appreciation of the rupee above 185 levels.

Meanwhile excess liquidity remains in the banking system and stock prices have started to go up.

-economynext.com

Editor_1
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