Suresh Peiris

📈Inflation: The latest CCPI inflation figures are out. And they indicate a significant drop in the year-over-year inflation measurement for April 2023. In fact, inflation(YoY) has fallen sharply from 50.3% recorded in March 2023 to 35.3% in April 2023. ⭕ Such a significant decrease in inflation could indicate one of two things, or even both: either there has been a highly positive economic change in the last month or there was a severe economic crisis precisely a year ago that is no longer taken into account for inflation measurement. ⭕ In March 2022 the inflation rate in Sri Lanka experienced a massive surge from 18.7% to 29.8% due to the removal of the Dollar peg set at Rs. 203 by @CBSL. Now this surge is no longer a part of the inflation record since the inflation year-over-year measurement considers only the events that occurred within the past year. ⭕ In the coming months, the price increase that occurred at the start of the #SriLankaEconomicCriris from March to September 2022 (inflation 18.7% to 69.8%) will gradually move out of the inflation record as old data continue to be left out from the inflation measurement. ⭕ Although the prices of goods will mostly remain the same, the inflation rate (Y-o-Y) will significantly decline in the coming months. It's essential to note that this decline about to happen is mostly not a sign of economic progress but rather a result of how inflation is calculated. ✅ If you are interested in understanding the impact of inflation on your salary and your purchasing power, we recommend checking out our Real Wage Calculator available at 👉 tools.numbers.lk/realwagecal #SriLanka #Inflation