COLOMBO – Sri Lanka’s inflation measured by the Colombo Consumer Price Index (CCPI) rose 5.9% in the 12 months to February 2024, down from 6.4% in January, with food prices down 2.1%, data from the state statistics office show.
Food prices were down 1.6% over 17 months despite a hike in value-added tax
The CCPI was unchanged in February 2024 at 200.6 points in February 2023, down from 200.7 points in January.
Though the 12-month inflation was higher than the 5% inflation target the central bank has promised, the agency has maintained monetary stability and created little inflation since September 2022 based on the index.
The revised CCPI Index was up 5.9 from September 2022 when monetary stability was reached and the central bank generated a balance of payments surplus, signalling the end of inflationary policy.
The food and non–alcoholic index was down 1.6% over the past 17 months with the help of currency appreciation despite hikes in value-added tax.
Services including education, however, continue to adjust to the earlier currency collapse.
-economynext.com
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