Sri Lanka’s inflation for May creeps up to 12.4%

Sri Lanka’s average inflation for May crept up, but the more responsive point-to-point data showed a declining trend. Sri Lanka’s average inflation for May crept up, but the more responsive point-to-point data showed a declining trend. Sri Lanka’s consumer price index crept up to 12.4 percent in the 12 months to May, up from 11.9 percent in April, due to hikes in fuel and food prices, the Central Bank said on Tuesday.

But the point-to-point inflation declined to 11.8 percent in May from 14.0 percent in April.

The May Colombo Consumer Price Index rose to 4,021.5 from 3958.5 in April.

Sri Lanka’s average inflation rate was 7.6 percent in 2004 and 6.3 percent in the year before.

The island nation which imports all of its oil requirements paid a stiff price when crude oil price shot up last year.

The Central Bank expects inflation to ease off to about 10 percent by year end, helped by an expected drop in agriculture prices.

However, private economists put year end inflation at around 12 percent, as they expect further hikes in retail fuel prices and shortages in agricultural products.