Sri Lanka's annual inflationrate may have 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 percent in July, its highest since January 2009, a Reuters poll of 13 analysts showed.
The impact of the drought and rupee depreciation in food prices this month, too, one analyst said on condition of anonymity.
Food accounts for more than 40 percent of the basket of items used to compile inflation figures.
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