ECONOMYNEXT – Sri Lanka’s inflation picked up slightly to 4.8 percent in the 12-months to July 2020 from 4.7 percent a in June, data from the state statistics office showed.
The widely watched Colombo Consumer Price Index grew 0.1 percent in the month of July to 135.4 points from 135.3 points after growing 0.8 percent in June.
The food index grew 0.1 points to 148 in July after growing 2.6 percent in June and 1.3 percent in May.
The food index had grown 10.9 percent in the past 12-months.
Non-foods also grew 0.1 percent.
Sri Lanka’s rupee fell close to 200 to the US dollar from 182 as March credit spiked amid money printing, and had since been allowed to appreciate to around 186 to the US dollar, amid a collapse in consumption and private credit.
Sri Lanka’s central bank generally buys dollars to stop the rupee appreciating back to original levels in suspected implicit real effective exchange rate targeting. Sri Lanka has the worst record among South Asian monetary authorities for currency stability.
Import controls have been slapped, further hitting the economy.
The year-to-date inflation is running slightly behind 2019 up to July. (Colombo/Aug01/02020)