Sri Lanka inflation at 2.5-pct in February by citizen index

Mar 03, 2014 (LBO) - Sri Lanka's inflation in February 2014 was measured at 2.
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5 percent by an index compiled by private citizens, coming below the 4.2 percent indicated by the state statistics office.
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Sri Lanka's credit growth has been weak in the past year and the Central Bank has also been sterilizing foreign exchange purchases.
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There has been controversy regarding state economic statistics including inflation due to base revisions at peak inflation periods and also discontinuing of a country wide index when inflation was high.

Such tactics are also found in other high inflation countries including Argentina and Venezuela.

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State-compiled indices contain various statistical ruses to understate volatility in inflation in particular, with the United State among the worst offenders.

The CAL Urban Index, compiled by Capital Alliance Research, a Colombo based consultancy, uses price data from around the country while the Colombo Consumer Price Index compiled by the state statistics office uses prices in the capital.

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In January the CAL Urban Index said prices rose 2.0 in the 12-months while, the state measurement came in at 4.

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2 percent.

The two indices diverged widely in 201

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