© Reuters. FILE PHOTO: A basic view of a principal market is seen, after the International Monetary Fund’s govt board permitted a $3 billion bailout, in Colombo, Sri Lanka March 21, 2023. REUTERS/Dinuka Liyanawatte/File Photo
COLOMBO (Reuters) – Sri Lanka’s client value inflation rose to 1% in October year-on-year from 0.8% in September, the statistics division stated on Tuesday.
The National Consumer Price Index (NCPI), which captures broader retail value inflation, is launched with a lag of 21 days each month.
Food costs fell 5.2% in October after declining 5.2% in September, from a yr earlier, the Department of Census and Statistics stated in a press release.
Prices for non-food objects, nonetheless, climbed 6.3% in October after rising 5.9% year-on-year in September.
Sri Lanka racked up file excessive inflation final yr after its financial system was pummelled by the worst monetary disaster in many years, triggered by a pointy decline in international alternate reserves.
But inflation has fallen sharply since June, partly because of the statistical base impact, but in addition helped by a stronger rupee forex, and higher harvests.
“Despite an increase in electricity prices last month, we expect inflation to end the year at about 5%,” stated Dimantha Mathew, head of analysis at First Capital Research.
“The impact from price adjustments is not expected to be severe and inflation is likely to remain within the central bank targets.”
The Central Bank of Sri Lanka (CBSL), which has focused inflation inside a band of 4% to six%, will announce on Friday its final coverage charge resolution for this yr.
Sri Lanka secured a workers degree settlement on the primary evaluation of its $2.9-billion bailout from the International Monetary Fund (IMF) final month.
But approval from the worldwide lender’s govt board has been delayed because the island nation holds debt restructuring talks with bilateral collectors and bondholders.