Sri Lanka annual inflation hits six-year high

01 Nov, 2008

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.

Read Comments