Sri Lanka said that its inflation has dropped to 6.3 per cent, a single-digit figure for the first time in two years, providing much-needed relief to the people amidst the worst financial crisis.
The INSEE contributes the downward trend in inflation to lower energy prices and a slower increase in the prices of food products (for the fourth consecutive month) and of manufactured goods.
Investors now await retail inflation data for June to be released later today. Analysts expect inflation may see an uptick due to the sharp rise in tomato and a relative spurt in prices of pulses.
An inflation-targeting central bank like ours should have a credible inflation measure, and like every other key fiscal or monetary parameter, this too needs a check.