sri lanka news: Sri Lankan inflation spikes to 70.2% amid worst economic crisis ever

Sri Lanka’s inflation rose to 70.2% in August from 66.7% a month ago as the island nation was grappling with an economic crisis, according to official data released on Thursday. the worst.

National Consumer Price Index (NCPI) determines how much people spend on a basket of selected goods and services rose 2.5% in August with food prices up 1.7% and non-food prices up 3.2%.

Non-food inflation rose to 57.1% in August from 52.4% in July due to a sharp increase in electricity tariff.

However, monthly prices fell to 3.2%, from 6.7% in July.

Core prices are measured, causing volatile commodities such as food, energy and transportation to accelerate in August to 60.5%, from 57.3% in July.

According to official data, food prices rose 84.6%, compared with 82.5% in July while price changes measured monthly, decelerated to 1.7%, from 4.6 % in July.

Earlier this month, revised electricity tariffs coupled with soaring food prices led to an increase in the national consumer price index for August.

According to tax experts, 15% Value Added Tax and 2.5% Social Security Contribution Fee could contribute to a price increase of at least 22%.

Based on inflation forecast, Sri Lanka Central bank last month said prices could peak in September before starting to decline later if global commodity prices remain stable.

In mid-April, Sri Lanka declared an international default due to the foreign exchange crisis. The country owes foreign countries 51 billion USD, of which by 2027 it must pay 28 billion USD.

According to the latest information World Bank Sri Lanka ranks 5th in terms of highest food price inflation in the world. It ranks behind Zimbabwe, Venezuela and Turkey, while Lebanon leads the list.

The country of 22 million people has been battling shortages of essentials, including fuel, food and medicine, for months after its foreign exchange reserves fell to record lows. stalled imports and caused unprecedented unrest.

Anti-government protests earlier this year forced President Gotabaya Rajapaksa to leave the country in July. He returned to Colombo earlier this month after a new government was formed under the President Ranil Wickremesinghe and anti-government protests subsided.

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