CCPI-based headline inflation in Sri Lanka sees sharp decline in May
The bank said the decline was generally in line with the deflationary path that the Central Bank of Sri Lanka (CBSL) projected in April.
Non-food inflation fell year-on-year to 27% in May from 37.6% in April.
Sri Lanka’s headline inflation, as measured by the annual change (YoY) in the Colombo consumer price index, fell to 25.2% in May this year from 35.3% in April. Non-food inflation fell year-on-year to 27% in May from 37.6% in April. Core inflation (YoY) fell to 20.3% in May from 27.8% in April. .
The CCPI monthly change was recorded at minus 0.02% in May. This small monthly variation is due to offset discounts in non-food items.
Core inflation (YoY), which reflects core inflation in the economy, fell to 20.3% in May from 27.8% in April this year.
Looking ahead, the downward inflation trend is expected to continue, dragging inflation down to single digits by Q3 2023, faster than previously forecast.
This deflationary process is supported by the slow impact of monetary and fiscal tightening policies, the strengthening of the Sri Lankan rupee, falling fuel and gas prices, and food prices, the central bank said. normalization and favorable effects of statistical base effects.
Fiber2Fashion (DS) News Desk