COLOMBO (Reuters) – Consumer price inflation in Sri Lanka fell to 4.6 percent year on year in July from 10.8 percent in June, thanks to lower food costs, according to the statistics department on Monday.
Every month, the National Consumer Price Index (NCPI) reflects broader retail price inflation and is provided with a 21-day lag.
Food prices fell by 2.5 percent in July, down from 2.5 percent in June, according to the Department of Census and Statistics.
Non-food prices fell by 10.9 percent in July, down from 18.3 percent in June.
Since June, Sri Lanka’s inflation has dropped considerably from previous highs, thanks in part to the statistical base effect, but also to a stronger rupee, which has reduced the cost of fuel, electricity, and imported food.
A $2.9 billion rescue from the International Monetary Fund (IMF) was achieved in March, replenishing the island’s foreign reserves, which had plummeted to historic lows in early 2022, putting the island into its worst financial crisis in more than seven decades.