According to the statistics department, Sri Lanka’s key inflation rate fell to 35.3% in April from 50.3% in March, a hint of comfort for the country’s damaged economy.

The Colombo Consumer Price Index (CCPI) showed a decrease in food inflation to 30.6% in April from 47.6% in March. In contrast, inflation for other goods reached 37.6%, according to the Census and Statistics Department.

Sri Lanka has been grappling with skyrocketing prices as it deals with the biggest financial crisis since achieving freedom from Britain in 1948. 

According to economists, April’s inflation was muted by reduced gasoline prices, lower demand, and softening global commodity prices, with inflation anticipated to drop quickly over the coming three months. 

“This decline is in line with expectations,” Sanjeewa Fernando, Asia Securities’ senior vice president of research, told Reuters. “By June, inflation is expected to fall to around 14% to 15%, owing in part to the high base effect.” 

In its first policy announcement since receiving a $3 billion bailout from the International Monetary Fund (IMF), the central bank left interest rates constant in early April and voiced optimism for inflation to decrease considerably in the coming months.

Nandalal Weerasinghe, Governor of the Central Bank, stated that a favorable base effect would begin next month, with inflation expected to reach single digits by the end of December. 

The national inflation of consumer prices rate, reported with a 21-day lag every month, climbed slightly to 49.2% in March, falling below 50% for the is reported with a 21-day lag every month, climbed slightly to 49.2% in March, falling below 50% for the very first time since last August.

The Colombo Consumer Price Index (CCPI), a leading indicator for larger national pricing, tracks inflation in Sri Lanka’s largest metropolis.