Sri Lanka’s Inflation Dropped to Single Digit in July 2023: NCPI Records 4.6%

Sri Lanka’s inflation, as measured by the National Consumer Price Index (NCPI), showed a decrease in July 2023, recording a year-on-year 4.6%. Sri Lanka’s inflation has dropped to single-digit figure for the first time in 20 months. In 2022 September month, Sri Lanka’s inflation was 73.70% according to the Central Bank.

According to the latest report published by the Department of Census and Statistics (DCS), this is a slight drop in comparison to the headline inflation of 10.8% recorded in June 2023.

The year-on-year inflation of the food group has dropped to minus -2.5% in July 2023 from 2.5% in June 2023.

Meanwhile, the year-on-year inflation of the non-food group decreased to 10.9% in July 2023 from 18.3% in June 2023.

Looking back at previous data, Sri Lanka faced a challenging period in March 2022, with inflation ranking as the second-highest in the world, according to Steve Hanke’s inflation chart. During that time, it was estimated that the country’s true inflation rate in March 2022 reached a staggering 132%. (LankaXpress.com)