Sri Lanka’s inflation hit a record ninth in a row in June, surging to 54.6% a day after the IMF called on the bankrupt nation to curb skyrocketing prices and corruption.
It was the first time that the increase in the Colombo Consumer Price Index (CPI) exceeded the psychologically important mark of 50 percent, according to the census and statistics department.
The figures came hours after the International Monetary Fund urged Sri Lanka to stem spiraling inflation and tackle corruption as part of efforts to save the troubled economy ravaged by a currency crisis.
The IMF ended 10 days of in-person talks with Sri Lankan authorities in Colombo on Thursday, following the country’s request for a possible bailout.
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The CPI has been marking new monthly highs since October, when year-on-year inflation stood at just 7.6%. In May it reached 39.1%.
The rupee has lost more than half its value against the US dollar this year.
Private economists say consumer prices are rising even faster than official statistics show.
The figures came hours after the International Monetary Fund urged Sri Lanka to contain spiraling inflation and tackle corruption.
According to Johns Hopkins University economist Steve Hanke, who tracks price increases in the world’s trouble spots, Sri Lanka’s current inflation is 128%, second only to Zimbabwe’s 365%.
Facing acute power shortages, Sri Lanka is observing a two-week closure of non-essential state institutions, along with school closures to reduce commuting.
The country’s 22 million people have been enduring acute shortages of basic goods such as food, fuel and medicine for months.
Protests continue outside the office of President Gotabaya Rajapaksa, demanding his resignation over unprecedented economic turmoil and mismanagement.
Sri Lanka turned to the IMF in April after the country defaulted on its $51 billion foreign debt.
Source: AFP
Article republished from the Chinese state media CGTN within the framework of an agreement between both parties to share content. Link to original article: https://news.cgtn.com/news/2022-07-06/Bankrupt-Sri-Lanka-s-inflation-jumps-beyond-50–1brVfV8G4HS/index.html
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