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Sri Lanka inflation accelerates to 3.6-pct in July

July 31, 2014 (LBO) – Sri Lanka’s consumer prices rose 3.6 percent in the 12 months to July 2014, with inflation accelerating from 2.8 percent in June, official data showed. The International Monetary Fund said yesterday credit has been slow, but inflation has to be watched and the Central Bank should be prepared to raise rates if necessary.

July 31, 2014 (LBO) – Sri Lanka’s consumer prices rose 3.6 percent in the 12 months to July 2014, with inflation accelerating from 2.8 percent in June, official data showed.

During the month the Colombo Consumer Price Index jumped 1.0 percent on top a 1.1 percent rise in June, the state statistics office said.
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Since December the index had risen 3.8 percent or higher than the 12 month inflation.

The increase came from food prices which were up 2.1 percent during the month on top of a 2.4 percent rise a month earlier. The food sub-index was up 5.1 percent during the past 12 months.

Non foods however were up only 2.4 percent.

Sri Lanka’s credit growth has been slow in the past year with pawning loans in particular shrinking, but the government has been borrowing abroad and excess liquidity has been high in mone

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