Sri Lanka’s inflation surged to 60.8 per cent in July, up from 54.6 per cent in June, the crisis-hit country’s statistics department said on Saturday, as food and fuel remained scarce amid depleted foreign exchange reserves.

The year-on-year inflation based on the Colombo Consumer Price Index was 60.8 per cent in July, the Department of Census and Statistics said in a statement. In June it was 54.6 per cent.

The year-on-year food inflation in July is 90.9 up from 80.1 per cent in June. The country’s central bank has said inflation may peak at 75 per cent. Sri Lankans have faced a shortage of essentials amidthe ongoing economic meltdown, the worst since 1948. Until the middle of thismonth, there was a severeshortage of cooking gas withlong lines for refills.

The situation has noweased with several shipmentscoming. However, the mileslong fuel queues can still beseen. The country has been negotiating a bailout packagewith the IMF. The talks hit asnag over the need to restructure debt. The President’s office in astatement on Friday said thenegotiations with the IMFhave been progressing.