Sri Lanka’s inflation picks up to 4.1-pct in March 2021

Wednesday March 31, 2021

ECONOMYNEXT – Sri Lanka’s 12-month consumer price inflation accelerated to 4.1 percent in March 2021 from 3.3 percent in February amid a drop in vegetable prices, though non-foods continue to rise, data from the state statistics office showed.

During the month the Colombo Consumer Price Index dropped to 138.9 index points from 139.1 points with a 1.6 percent drop in food prices.

Traded commodities in particular had been rising steadily over the last four months, partly driven by loose US policy.

Sri Lanka has also been printing unprecedented volumes money under so-called ‘Modern Monetary Theory’ in 21st century John Law style operation triggering record balance of payment deficits and the rupee has also been sliding as the central bank gradually runs out of reserves.

On Tuesday 74 percent of a weekly Treasury bill auction was unsold.

In the US a virtual Mississippi bubble has been fired in stocks. In Sri Lanka the stock market has corrected. (Colombo/Mar31/2021)