Consumer price inflation in Sri Lanka decreased to 4.6% year-over-year in July from 10.8% in June, according to data released on Monday by the statistics department.
The National Consumer Price Index (NCPI), which is produced each month with a 21-day lag, measures overall retail price inflation.
According to a statement from the Department of Census and Statistics, food costs decreased by 2.5% from June to July.
Prices for non-food items also decreased, from 18.3% in June to 10.9% in July.
Since June, Sri Lanka’s inflation has significantly decreased from the previously seen runaway levels. This is partially attributable to the statistical base effect, but it has also benefited from a stronger rupee, which has decreased the cost of fuel, electricity, and imported foods.
Foreign reserves were restored after the island entered its greatest financial crisis in more than seven decades in early 2022 due to a $2.9 billion bailout from the International Monetary Fund (IMF) that was secured in March.
