Sri Lanka’s inflation eases to 2.7-pct in Feb

Feb 29, 2012 (LBO) – Sri Lanka’s consumer prices rose 2.7 percent in the 12-months to February 2012, easing from 3.8 percent in January, though the index gained 0.4 percent in the month, the state statistics office said. Interest rates have since risen.

Sri Lanka’s inflation remained low by historic standards despite a steep depreciation of the rupee in February.

The index gained 1.2 percent in December following a fall in the currency in November.

In February though non-food items in the index rose 1.8 percent in the month and were up 9.2 percent from a year earlier, food prices were down 4.1 percent from a last February. In the early part of 2011 food prices spiked amid floods.

In February the rupee was floated though some intervention is taking place from time to time.