The CBSL had increased rates by a massive 950 basis points between August 2021 to July 2022 to fight runaway inflation. The central bank said tight monetary and fiscal policies will help bring down inflation to desired levels by the end of 2023 and restore price and economic stability over the medium term. After hitting an annual peak of 68.9% in September with food inflation climbing to 93.7%, consumer inflation moderated to 57.2% in December.
