Sri Lanka inflation climbs as food prices rise

Author: AFP

Crisis-hit Sri Lanka’s annual inflation almost doubled to 1.7 percent in June, up from 0.9 percent the previous month, as food prices began rising again, official data showed Saturday.

The Census and Statistics department data came days after Sri Lanka secured a deal with its bilateral creditors to restructure $10 billion in debt, a key condition to maintain an IMF bailout programme.

Food inflation returned, with prices rising 1.04 percent in the year to June, having been flat a month earlier, the department said. At the height of Sri Lanka’s economic crisis when it defaulted on its foreign debt in 2022, inflation had risen to nearly 70 percent.

Sri Lanka debt deal a key milestone towards restoring debt sustainability, IMF says

The Central Bank of Sri Lanka expressed hope on Saturday that it would be able to maintain overall inflation below 5.0 percent for 2024.

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