Sri Lankans are now being caught up with vicious economic cycle triggered by political standoff between President Maithripala Sirisena and Prime Minister Ranil Wickremasinghe who pushed citizens from frying pan in to fire.
Despite the reduction in inflation rate, measures to tackle massive debt burden and the ailing external sector through the untiring efforts of the Central Bank, the country’s’ scope of economic recovery and macro-economic consolidation has been shattered by political bickering.
This situation has been further aggravated following the Easter terror attacks and organised attacks on minority Muslims.
Since the present good governance government had failed to nip them in the bud, a fear psychosis has been created among majority Sinhalese and other minorities including Christians and Tamils.
As the government grapples with heavy budget deficits and high debt, hopes for improved living standards for the people have been disturbed, further eroding trust in it and strengthening the appeal of the Rajapaksa-led opposition.
People are suffering without income avenues and money needed to meet their day today needs amidst low money circulation in the country although the inflations recorded decline.
Sri Lanka’s headline inflation as measured by the year-on-year change in the National Consumer Price Index (NCPI, 2013=100) decreased to 3.5 per cent in May 2019 from 3.6 per cent in April 2019 due to the high base prevailed in the corresponding month of the previous year, Central Bank announced.
Meanwhile, in May 2019, year-on-year Food and Non-food inflation recorded -0.4 per cent and 6.7 per cent respectively.
The change in the NCPI measured on an annual average basis increased marginally to 2.0 per cent in May 2019 from 1.9 per cent in April 2019.
When monthly change is considered, the NCPI increased by 1.1 per cent in May 2019 with the increases observed in the prices of the items in both Food and Non-food categories.
Within the Food category, prices of vegetables, fresh fish, limes, potatoes and milk powder recorded increases. In addition, within the Non-Food category, prices of the items in Transport; Health; and Recreation and Culture sub-categories increased during the month.
The Department of Census and Statistics announced that NCPI for all items for the month of May 2019 increased to 128.7 from 127.3 in April.
The increase in the index point by 1.07 percent was due to the expenditure value increase of food items by 0.89 percent and expenditure value increase of non-food items by 0.17 percent.
The Year-on-Year inflation of food group has increased from ‐1.2 percent in April 2019 to ‐0.4 percent in May 2019 and that of non‐food group has decreased from 7.5 percent to 6.7 percent during this month.
Contributions to the inflation in May 2019 from food group and non-food group are -0.17 percent and 3.68 percent respectively.
The moving average inflation for the month of May 2019 is 2.0 percent. The corresponding rate for the month of April 2019 was 1.9 percent.
(LI)