Sri Lanka’s inflation slowed for a fourth straight month in January as the supply situation improves and the country’s monetary authority kept financial conditions tight.
(Bloomberg) — Sri Lanka’s inflation slowed for a fourth straight month in January as the supply situation improves and the country’s monetary authority kept financial conditions tight.
The consumer price index in the capital Colombo eased to 54.2% from a year ago, the statistics department said in a statement released Tuesday, from 57.2% in December. That’s the slowest pace since May, according to compiled data. The median estimate in a Bloomberg survey was for a 52.8% gain.
Earlier this month, the central bank kept its benchmark rate unchanged at 15.5% after last year’s cumulative 950 basis points in increases, signaling that monetary policy will stay tight to rein in Asia’s fastest inflation. Governor Nandalal Weerasinghe also said last week that they’re starting to see disinflation and price gains should ease to single-digit levels by end 2023. A pick up in tourism and remittances is bringing much-needed inflows, helping the bankrupt economy turn the corner, pending a $2.9 billion crucial bailout.
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