Sri Lanka inflation at 6.9-pct in April
ECONOMYNEXT – Sri Lanka’s consumer prices rose 6.9 percent in the 12 months to April 2017, slowing from 7.3 percent in March, but prices rose 0.5 percent in the month, data from the state statistics office show.
Food prices rose 8.6 percent over the past 12 months, with a 1.7 percent jump in April, after a 0.7 percent fall in March. Non-foods rose 0.1 percent.
Sri Lanka’s Central Bank has generated one of the highest inflation in the region, and has been one of the poorest performing in the region in the wake of a currency collapse in 2015.
From January, the rupee is also facing a renewed threat from large volumes of money printed to repay government debt, which is related to fiscal dominance.
The Central Bank has scrambled to save the economy from the shock of the money printing and hiked policy rates. (Colombo/Apr28/2017)