Sri Lanka Central bank says inflation declines considerably in October

Nov 03, 2014 (LBO) –Sri Lanka inflation continued its decelerating trend observed since June 2013 and reached 1.6 per cent in October 2014 compared to 4.7 per cent in July 2014, on an annual average basis the Central bank of Sri Lanka said in a media release. Prices in Clothing and Footwear; Health; Recreation and Culture; Education; and Miscellaneous Goods and Services sub groups recorded increases, while prices in Furnishing, Household Equipment and Routine Household Maintenance; and Communication sub groups remained unchanged during October 2014.

Prices in the Food and Non Alcoholic Beverages sub category increased marginally during the month, mainly due to the increase in average prices of some rice varieties, many vegetable varieties, dhal, eggs and coconuts.

Nevertheless, average prices of many fresh fish varieties, coconut oil, potatoes, red onions, big onions and green chilies declined, exerting a downward pressure on inflation during the month, the bank said.

Core inflation, which reflects the underlying inflation in the economy, declined from 3.7 per cent in the previous month to 3.6 per cent in October 2014 on a year on year basis.

Annual average inflation during October 2014 was 3.3 per cent, compared to 3.2 per cent recorded