Sri Lanka inflation continues falling


Reuters, Colombo :
Sri Lanka’s consumer price inflation rate eased to 0.8 percent year-on-year in September from 2.1 percent in August, the statistics department said on Monday.

The National Consumer Price Index captures broader retail price inflation and is released with a lag of 21 days every month.

Food prices fell 5.2 percent in September after declining 5.4 percent in August, from a year earlier, the Department of Census and Statistics said in a statement.

Prices for non-food items, however, climbed 5.9 percent in September after rising 9 percent year-on-year in August.


Sri Lanka experienced record high inflation after its economy was pummelled by the worst financial crisis in decades.

But since June, its inflation has come down sharply, partly due to the statistical base effect, but also helped by a stronger rupee currency, and improved harvests.

Sri Lanka raised power prices for households by 18 percent last week but the increase is unlikely to significantly push up inflation, analysts said.