Sri Lanka inflation 0.9% in 23-months to Aug 2024
COLOMBO – Sri Lanka’s inflation rose 0.9% in the 23 months since September 2022, when the central bank’s deflationary policy started to show up in the balance of payments, official data show.
Inflation measured by the Colombo Consumer Price Index (CCPI) rose 0.5% in the 12 months to August 2024, the state statistics office said.
The CCPI fell from 194.7 points to 191.1 points in August 2024, indicating a fall of 1.8%.
The food sub-index fell 2.0% in the month.
Since September 2022, the food index has fallen 4.9%.
Sri Lanka’s central bank is undershooting its 5% inflation target (domestic anchor), and providing a strong foundation for people to rebuild their economic lives that were lost due to flexible inflation targeting cum potential output targeting coupled with a surrender rule.
The exchange rate has been stable at around 300 to the US dollar keeping energy and food prices in check.
The US Fed has also tightened policy leading to a fall in commodity prices. Earlier due to depreciation Sri Lanka did not get any benefit from US tightening, unlike East Asian nations.
-economynext.com
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