Sri Lanka inflation slows to 9.1-pct in Sept: Census dept

Sept 28, 2012 (LBO) – Consumer prices in Sri Lanka’s capital rose 9.1 percent in the 12-months to September 2012 slowing from 9.5 percent in August, while the index fell in absolute terms in the month, the state statistics office said. The Colombo Consumer Price Index fell absolutely for the second month running to 165.5 points from 165.7 points a month earlier. In August the index fell 1.0 point.

The food and beverages sub index (with alcohol excluded due to the current administration’s Mathater Thither or anti alcohol policy) fell 0.3 points to 185 points in the month, while non foods rose 0.1 percent.

The moving average of the index, a lagging indicator averaged across two years continued to rise to 6.5 percent in September from 6.3 percent in August.

Sri Lanka’s inflation spiked amid a balance of payments crisis triggered by heavy money printing to accommodate unproductive credit taken to finance energy subsidies by the state which sent the rupee plunging to 134 to the US dollar from 110 a year earlier

However after energy prices and interest rates were raised after two billion US dollars of foreign reserves were lost and credit has slowed allowing inflation to moderate.

Inflation has also slowed a