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Sri Lanka inflation slows to 4.8-pct in July

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Sri Lanka inflation slows to 4.8-pct in July

Post by sashimaal on Mon Jul 31, 2017 10:22 pm

ECONOMYNEXT - Sri Lanka's inflation slowed to 4.8 percent in July 2017 from 6.1 percent in June, with the Colombo Consumer Price Index also falling during the month, data from the state statistics office said.

The Colombo Consumer Price Index fell 0.6 percent to 119.4 points during July from 120.1 at the end of June, with food prices falling.

Sri Lanka's bank credit has started to ease and the central bank is now sterilizing forex purchases, in contrast to printing money in 2015 and 2016.

Sri Lanka has a so-called soft-pegged central bank, which delays rate hikes by massive bouts of money printing whenever credit demand goes up, generating balance of payments crises and high inflation.

During the current crises where the rupee collapsed from 131 to around 154 to the US dollars, inflation peaked at 7.3 percent in March, amid benign external conditions.

Calls for reform and accountability at the central is growing, as chronic currency depreciation and inflation continue to destroy lifetime savings and real salaries of people, forcing citizens to seek jobs in countries with stronger currencies. (Colombo/July31/2017)
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Re: Sri Lanka inflation slows to 4.8-pct in July

Post by jiggysaurus on Tue Aug 01, 2017 8:34 pm

Anay manda oya Central monawa kiwwath chicken buth packet has gone from 130 to 220 within 6 years and chicken portion is also halved.

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