Higher prices for food, healthcare, and education caused Sri Lanka’s inflation to reach its highest level in 14 months in September, the nation’s statistics office reported on Tuesday.
Compared to a deflation of 0.5 percent a year ago, year-over-year inflation was 1.5 percent, up from 1.2 percent in August, according to official figures.
Inflation in September was the highest since prices increased by 2.4% in July of last year. In September, prices for food alone increased by 2.9 percent, while prices for non-food items increased by a relatively moderate 0.7 percent.
The central bank of Sri Lanka has stated that it anticipates further price increases by year’s end, with a target of 5%.
Three years ago, during the height of Sri Lanka’s worst economic crisis, when it was running out of foreign cash to pay for even the most basic imports, the country’s inflation rate reached a record 69.8%.
But since the nation received a $2.9 billion bailout from the International Monetary Fund (IMF) in early 2023, prices have leveled off.
The IMF has stated that the economy has stabilized, albeit the recovery is still precarious, and the government has also reached debt restructuring deals with foreign lenders.
