Inflation figures for July rise, pushed up by import costs and drought

Sri Lanka’s inflationary rate for July rose marginally over June, as a prolonged drought and higher import costs pushed key food prices up. Sri Lanka’s inflationary rate for July rose marginally over June, as a prolonged drought and higher import costs pushed key food prices up. The Central Bank said Friday that the trend deviated from the usual seasonal pattern where prices tend to drop in July.

“Overall price developments, thus far, indicate a rising trend in average consumer prices,” the Bank said.

The CCPI (Colombo Consumer Price Index), which tracks the lowest 40 percent income earners within the Colombo Municipality, touched 8.9 percent (over 6.8 percent) on a point-to-point basis.

The CDCPI (Colombo District Consumer Price Index), computed by the Central Bank to track the lowest 40 percent wage earners living in the Colombo District, ended 5.5 percent on a point-to-point basis.

The Food category, which has the highest weight of 59 percent, contributed largely towards CDCPI’s rise, the bank said.

The bank said there were significant price increases in rice, sugar, certain condiments including dried chillies,