Sri Lanka August inflation eases to 17.3%

August 31, 2007 (LBO) – Consumer prices in Sri Lanka's capital Colombo eased 0.8 percent in the month August, with the 12-month inflation at 17.3 percent from 17.6 percent a month ago, the government's statistics office said. The food category of CCPI index registered 5,177.3 points or 15.2 percent lower in August 2006, compared to 6112.1 points this year.

Updated The Colombo Consumer Price Index (CCPI) fell to 5453.2 points from 5496.2 points a month before. August is traditionally a low inflation month in Sri Lanka.

The moving average of the index which smooth out seasonal changes continued to edge up to 17.3 percent from 17.2 percent.

The Department of Census and Statistics said food items fell 1.14 percent with vegetables falling 1.59 percent and fresh fish by 0.42 percent while fuel and light, clothing and miscellaneous items rose.

The department claimed that the price decreases were due to a better supply of consumer goods to the main markets in Colombo, but did not hazard a guess as to whether supply conditions were 15 percent worse than the previous year.