61724
Lanka Inflation Hits Multi-Year High
Lanka Inflation Hits Multi-Year High

Lanka Inflation Hits Multi-Year High

Lanka Inflation Hits Multi-Year High

Sri Lanka’s inflation hit 7.3% in the 12-months to March 2017, the highest seen the 2012 currency collapse, data from the state statistics office show, as the rupee depreciated steadily amid stronger global commodity prices, economynext reported. The Colombo Consumer Price Index rose steadily from October 2016 climbing from 112.1 points to 116.7 points in March 2016, data from the Department of Statistics show. The index however fell 0.2 points in March to 116.5 points. The twelve month moving average of the index, a lagging indicator averaged across two years continued to move up to 5% from 4.6%. Sri Lanka’s inflation goes up primarily because the country has a soft-peg or what some economists call a half-baked currency, where the central bank tries to target both the interest rate and exchange rate (buying dollars to build forex reserves), leading to currency crises. The central bank typically delays interest rate hikes by printing money when the credit cycle turns and government or private credit or both picks up. Last week the central bank hiked policy rates by 0.25% to 8.75%.

 

Short URL : https://goo.gl/x0FZGV
  1. https://goo.gl/1hPEoY
  • https://goo.gl/1AUpq1
  • https://goo.gl/QKGm0p
  • https://goo.gl/pMfrIj
  • https://goo.gl/vvDuqD

You can also read ...

Mastercard Files Patent to Use Blockchain
Mastercard has filed a patent that reveals it might utilize...
Egypt Growth to Reach 5.2%
The International Monetary Fund expects economic growth in...
Indonesia Growth Accelerating
Economic data released so far this year shows a pick-up in the...
Consumers are starting to realize the extent to which digital services profit from their personal information.
Before the threat of a US-China trade war arose, surging stock...
In Europe, the Stoxx 600 index edged 0.103% higher by mid-day in Frankfurt, with similar percentage gains for benchmarks around the region.
Global stock markets followed Wall Street higher Wednesday...
Household waste recycling installation.
The Circular Economy package, with recycling targets and other...
Turkey Sees 4.1% Growth
Turkey’s economic growth will fall short of the government’s...
Gold Rally Coming
Be patient when it comes to gold, says one analyst, projecting...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus