Colombo Inflation at drastic high at 13.4%

TKS Research says high urban inflation is presently curtailing GDP growth

Relationship b/w Inflation & GDP Growth explained

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Local equity and securities research firm, TKS Securities last week said that its primary research on consumer prices had revealed that the urban middle income consumer is weathering inflation of over 13% in comparison to the national average of 7.8% based on the Colombo Consumer Price Index (CCPI). According to an Inflation report published by the firm, they note that Colombo district which accounts for 22% of total country’s GDP having around 25% of its population as middle income earners are faced with a relatively higher inflation than the number indicated by CCPI and hence affecting the potential GDP growth of the economy.