Sri Lanka inflation picks up to 4.4-pct in June 2018

ECONOMYNEXT – Sri Lanka’s inflation rose to 4.4 percent in the 12-months to June 2018, from 4.0 percent in May, data from the state statistics office showed.

The Colombo Consumer Price Index rose a sharp 2.0 percent during the month to 125.4 points in June from 122.9 points in May.

The statistics office said food prices rose 1.32 percent with vegetables up 0.81 percent and sea fish up 0.35 percent.
Non-foods rose 0.7 percent with transport rising 0.52 percent. Sri Lanka raised fuel prices in May after holding them down for more than two years.

In April and May the rupee fell after a bout of money printing in late March and April, though monetary policy has since tightened.

In recent weeks the US dollar has strengthened and floating and managed float currencies have weakened.

But many such currencies also appreciated in 2017, when the US dollar weakened, but the rupee continued to depreciation pushing the price structure upwards.  Sri Lanka has a pegged exchange rate, which tends to crawl permanently down.  (Colombo/June29/2018)

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