Sri Lanka’s consumer inflation hits record 73.7% in September

Sri Lanka’s National Consumer Price Index (NCPI) based-inflation rose to a new high of 73.7 per cent in September from a year earlier, quickening from 70.2 per cent in August, the statistics department said.

Annual food price inflation picked up to 85.8 per cent from 84.6 per cent in August, while prices of non-food items rose 62.8 per cent.

Sri Lanka’s Central Bank Governor Nandalal Weerasinghe predicted earlier on Thursday that inflation in the island nation is peaking, with price rises likely to ease this month.

The NCPI captures broader retail price inflation and is released with a lag of 21 days every month.

The more closely monitored Colombo Consumer Price Index (CCPI), released at the end of each month, rose 69.8 per cent in August. It acts as a leading indicator for national prices and shows how inflation is evolving in the city.

But the higher than expected inflation numbers are unlikely to push the central bank to increase rates, analysts told Reuters.

Sri Lanka is planning to increase direct taxes to reduce the deficit in its upcoming budget for 2023 and put the economy on a more stable footing, President Ranil Wickremesinghe said.

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