Sri Lanka inflation accelerates to 6.6-pct in October

Oct 29, 2010 (LBO) – Consumer prices in Sri Lanka’s capital Colombo rose 6.6 percent in October from a year earlier, accelerating from 5.8 percent in September, the government’s statistics office said. It was the sixth straight monthly increase in inflation and was driven largely by price increases in food and beverages.

During October prices rose 1.2 percent. The so-called annual average inflation, a lagging indicator averaged across two years, rose to 5.4 percent from 5.0 percent in September.

The Colombo Consumer Price Index was at 223.3 points up from 220.7 points in September 2010.

“The contribution to the monthly increase of 1.2 per cent in the Index originated mainly from price increases in the sub category of food and non-alcoholic beverages (2.2 percent),” the central bank said in a stateemnt.

Within the Food sub category price increases were registered for rice, wheat flour, bread, vegetables, coconut, coconut oil, big onions ,red onions and meals bought from outside.

Price increases of rice, coconut and vegetables were mainly due to seasonal factors, the bank said.

“Meanwhile, prices of fish and fresh fruit declined.”

Prices in the sub categories of c