Sri Lanka’s consumer prices climbed 0.6% year-on-year last month, official data showed on Monday, after a 0.8% decline in April, as the economy recovers from its worst financial crisis in decades.
The National Consumer Price Index captures broad retail price inflation and is released with a lag of about three weeks every month.
Sri Lanka’s economy grew 4.8% in the first quarter compared to the prior-year period, after a severe dollar shortfall three years ago plunged the country into a financial crisis and sent inflation soaring to 70% at its height.
Inflation is only expected to reach the Sri Lankan central bank’s target of 5% in 2026, analysts said in May.
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“Inflation is picking up a little ahead of schedule,” said Shehan Cooray, head of research at HNB Stockbrokers, who said inflation was likely to go up in June due to an increase in power prices, but expected it to remain below 5% this year.
Colombo hiked power prices by 15% last week in its effort to secure International Monetary Fund (IMF) approval for the fifth tranche of its $2.9 billion programme.