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Sri Lanka's annual average inflation rose to 23.4 percent in October from 23.2 percent in September, the government said on Friday. It was the highest level on a new index, introduced last December, based on 2002 prices. However, consumer price inflation eased for a fourth straight month to a year-on-year 20.2 percent this month from 24.3 percent in September.
In June, it hit a record on the current index of 28.2 percent due to soaring food and oil prices. A Reuters inflation survey had expected the data to show consumer price inflation of 22.90 percent, while annual average inflation measured on a 12-month moving average was also seen at 23.5 percent. "The slowdown is mainly due to a fall in food prices," Shivantha Meepage, a research analyst at HNB Stockbrokers, said. Food accounts for 45.5 percent of the index. The sub-index for food has declined to 214.5 points in October, from September's 217.2 points, official data showed.

Copyright Reuters, 2008

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