Inflation is coming down. What does this mean for capital markets?

Colombo Consumer Price Index (CCPI) inflation was reported at 35.3% in April 2023, down from dizzy heights of 69.8% recorded in September 2022. This is in line with our expectations, and we expect headline inflation to come down to low single digits by the end of the year, A question we often get asked is “How is that even possible?”