The statistics department reported on Wednesday that Sri Lanka’s National Consumer Price Index (NCPI) (LKNCPI=ECI) eased year-on-year to 65% in November after a 70.6% increase in October.
According to a statement from the crisis-hit nation’s Department of Census and Statistics, food prices increased by 69.8% in November, while non-food inflation increased by 60.4%.
A poorly thought-out ban on chemical fertiliser that was implemented last year and has since been lifted are two factors that have contributed to Sri Lanka’s recent struggle with high inflation.
According to Dimantha Mathew, head of research at First Capital, ‘November has shown a faster deceleration than expected and this is likely to continue, but the easing could be offset by an electricity power increase the government may implement early next year.’
According to him, inflation will likely fall below 60% by the end of the year before rising to single digit levels in the third quarter of the following year.
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