Sri Lankan Inflation Breaks Record 54.6 Percent, Economists Believe Original Figure is 128 Percent

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ACCURATE.CO Sri Lanka’s inflation hit a record 9th in a row in June. According to official data on Friday (1/7), the figure rose to 54.6 percent a day after the IMF asked the bankrupt country to rein in soaring prices and corruption.

This is the first time the rise in the Colombo Consumer Price Index (CCPI) has crossed the psychologically important 50 percent mark, according to the census and statistics department.

Hours earlier, the International Monetary Fund (IMF) had urged Sri Lanka to contain inflation and tackle corruption to save its ailing economy. The IMF concluded 10 days of direct discussions with Sri Lankan authorities in Colombo on Thursday (30/6), following the country’s request for a possible bailout.

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Meanwhile, the CCPI has set a new peak of monthly gains since October when Sri Lanka’s year-on-year inflation stood at just 7.6 percent. In May, the figure skyrocketed to 39.1 percent.

The Sri Lankan rupee has lost more than half its value against the US dollar this year. However, private economists say consumer prices are rising faster than figures in official statistics. According to an economist at Johns Hopkins University, Steve Hanke, who tracks price increases in troubled countries, Sri Lanka’s inflation is currently 128 percent, second only to Zimbabwe’s 365 percent.

Experiencing an acute energy shortage, Sri Lanka closed non-essential state institutions and schools for 2 weeks to reduce travel. In addition, 22 million people there experience acute shortages of basic necessities, including food, fuel and medicine for months.

Protests continued in front of President Gotabaya Rajapaksa’s office. They demanded his resignation due to the unprecedented economic turmoil and mismanagement.[]

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