For the first time in a year, Sri Lanka’s inflation decreased in October as food and gasoline shortages subsided.
According to a statement released on Monday by the statistics division, the consumer price index in the nation’s capital Colombo dropped to 66% from a year earlier. That represents a decrease from 69.8% in September and a median of 68.5% in a study by media.
The figures came as a nice surprise to Sri Lanka’s monetary authorities, which had predicted that inflation would reach its high this month. The Central Bank of Sri Lanka increased borrowing costs by 9.5 percentage points this year, but has maintained the benchmark rate at 15.5% for the past two meetings. On November 24, the monetary policy will be reviewed again.
Sri Lanka’s finances have temporarily stabilized thanks to declining global commodity prices, support from friendly nations, and repurposed money from multilateral lenders. As officials work to reach a debt restructuring agreement with international creditors, which is necessary to open the International Monetary Fund‘s $2.9 billion bailout package, supplies of food, fuel, and medications are beginning to arrive.
