Sri Lanka's annual inflation rate has accelerated to a 42-month high in July as a
drought pushed up local food prices and a weaker rupee aggravated import bills.
Annual inflation is expected to have accelerated to 9.4% in July, it’s highest since January 2009 while in June, prices rose 9.3% from a year earlier.
Food accounts for more than 40% of the basket of items used to compile inflation figures.
Central Bank Governor Ajith Nivard Cabraal said last week that annual inflation in July should come down after the government reduced import taxes on certain food items.