Consumer Price Inflation in Colombo climbed again in November, continuing a trend started in April 2004. Consumer Price Inflation in Colombo climbed again in November, continuing a trend started in April 2004.
The Colombo Consumer Price Index (CCPI) rose 13.1 percent in the 12 months to November 2004, up from 12.1 in November, the Central Bank said Tuesday.
The seasonally adjusted moving average also rose to 6.8 percent from 6.1 in October.
Central Bank says prices have a tendency to rise late in the year.
The Bank says rising food prices (which constituted 60 percent of the index) was causing the index to go up, despite the government bringing down the VAT on some food items.
Coconut and upcountry vegetable prices had eased somewhat, but imported food has risen.
Sri Lanka’s inflation fell for nearly two and a half years from 16 percent to around 1-2 percent, on the back of tight fiscal policy and massive foreign exchange flows, which strengthened the domestic currency.
But the trend reversed in April 2003, and the country is now in the grip of a foreign exchange crisis, w