Sri Lanka inflation at 4.2-pct in February

Feb 28, 2013 (LBO) – Sri Lanka’s consumer prices rose 4.2 percent in the 12-months February 2014, down from 4.4 percent in January, the state statistics office said. The widely watched Colombo Consumer Price Index rose 0.2 percent during the month.

Annual average inflation, a lagging indicator averaged across two years eased to 6.0 percent in February 2014 from 6.5 a month earlier, the statistics office said.

Inflation showed up a rise in the food sub-index rose 0.2 percent in February after falling 0.9 percent a month earlier. Non-foods rose 0.1 percent in after rising 1.7 percent a month earlier.

Sri Lanka’s inflation spiked to 9.8 percent in February 2013 following a balance of payments crisis in 2012 which sent the rupee spiraling down to 130 to the US dollars from 110 levels and has since moderated amid weak credit growth.

The central bank is targeting inflation of low single digits generally understood to be below 5.0 percent in 2014, after keeping it at single digits for several years.