Asia

Inflation rate in bankruptcy Sri Lanka soars above 50%

On June 28, 2022, in Colombo, a man rides a bicycle along a highway as fewer vehicles are on the road due to lack of fuel during the country’s economic crisis. — Reuters pic

Friday, July 1, 2022 12:36 PMMYT

Colombo, July 1-Sri Lanka’s inflation hit a record nine times in a row in June, official data show Friday, 54.6 a day after the IMF called on bankrupt countries to curb soaring prices and corruption. Has risen to%.

This is the first time that the Colombo Consumer Price Index (CCPI) has risen above 50%, which is psychologically significant, according to the Census and Statistics Bureau.

This figure came hours after the International Monetary Fund urged Sri Lanka to contain spiral inflation and deal with corruption as part of its efforts to save the troubled economy devastated by the currency crisis.

The IMF ended a 10-day face-to-face talk with Sri Lankan authorities in Colombo on Thursday in response to a request for possible bailouts from the country.

CCPI has set a new monthly high since October, when inflation was only 7.6% year-on-year. In May it reached 39.1 percent.

The rupee lost more than half the value of the US dollar this year.

Private economists say consumer prices are rising even faster than official statistics show.

According to Steve Hanke, an economist at Johns Hopkins University who is tracking price increases in trouble spots around the world, Sri Lanka’s current inflation rate is 128%, second only to Zimbabwe’s 365%.

Faced with a serious energy shortage, Sri Lanka is monitoring schools to be closed to reduce commuting and non-essential state agencies to be closed for two weeks.

Twenty-two million people in the country have endured a serious shortage of essentials such as food, fuel and medicine for months.

Outside the office of President Gotabaya Rajapaksa, protests continue demanding resignation for unprecedented economic turmoil and his mismanagement.

Sri Lanka joined the IMF in April after the country defaulted on US $ 51 billion (RMB224.7 billion) in external debt. — AFP

https://www.malaymail.com/news/money/2022/07/01/bankrupt-sri-lankas-inflation-jumps-beyond-50pc/15195 Inflation rate in bankruptcy Sri Lanka soars above 50%

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