ECONOMYNEXT – Inflation in Sri Lanka rose 54.6% in the 12 months to June 2022, with the central bank pushing up consumer prices in the capital Colombo by 12.8% in the month, according to official data.
The Colombo Consumer Price Index, the most watched price indicator, rose to 220.2 points from 195.2 points a month earlier after two years of money printing and the collapse of a flexible anchor.
Food prices increased by 80.1% over the 12 months.
Food prices have increased by 102.7% since February 2020, when aggressive open market operations aimed at creating a “developmental state” began.
Sri Lanka operates a highly discretionary monetary regime called ‘flexible inflation targeting’, sold to the Third World by Western mercantilists, where open market operations are triggered to crash a now-qualified reserve-raising peg of “flexible exchange rate”.
Food prices rose 122% from August 2019, when open market operations were launched to maintain longer-term bond yields under “flexible inflation targeting” with a targeting of “output gap targeting”.
Global inflation is also on the rise after the US Fed printed money saying inflation was “transient” and caused by supply bottlenecks. (Colombo/01July/2022)