Sri Lanka’s inflation is at 2.1-pct in December 2014: Central Bank

Jan 01, 2015 (LBO) –Sri Lanka inflation up to 2.1percent in December 2014 from to 1.5 percent in November 2014, the Central bank of Sri Lanka said in a media release. The data is based on the change in the Colombo Consumers’ Price Index (CCPI) (2006/07=100), which is computed by the Department of Census and Statistics.

The year-on-year (YoY) inflation decreased to 2.1 per cent in December 2014 compared to 4.7 per cent in December 2013 on a year-on-year basis.

Annual Average inflation which followed a declining trend for nineteen consecutive months reached 3.3 percent in December 2014 from 6.9 percent in December 2013.

This is, by far the longest period that both year-on-year inflation (71 months) and annual average inflation (65 months) have continuously remained at single digit levels, after the economy was liberalized, Central Bank said.

Prudent monetary management, relatively stable exchange rate, moderation in prices of both food and non-food imported items, supply side improvements, downward revisions in administered prices of electricity and water tariffs, LP Gas and fuel and timely fiscal policy measures introduced to contain supp