Sri Lanka’s inflation 9.8-pct in February 2013

Feb 28, 2013 (LBO) – Sri Lanka’s consumer prices rose 9.8 percent in February 2013 from a year earlier, with the index rising 0.4 percent during the month, the state statistics office said. Inflation was also 9.8 percent in January.

The state statistics office said food and non-alcoholic beverages rose 0.6 percent and non-food items rose 0.2 percent during the month. During the 12-months food prices rose 12.9 percent in the 12-months and non-foods rose 7.2 percent.

Sri Lanka’s central bank cut policy rates by 25 basis points in December to 7.5 percent and 9.5 percent but kept them steady in January and February. In 2012 the rupee depreciated.

The International Monetary Fund has asked authorities not to cut rates until inflation begins to fall.

The Central Bank is expecting rates to fall after March.