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Sri Lanka inflation eases to 8.8-pct in May

May 31, 2011 (LBO) - Consumer prices in Sri Lanka's capital Colombo rose 8.

8 percent in May 2011 from a year earlier, decelerating from a high of 9.8 percent in April, the government's statistics office data showed.

The country's interbank money markets are flushed with excess liquidity.

But in the month of May the index rose 0.6 percent with both food and non-foods rising.

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In April also non-foods rose sharply taking up the slack as food prices eased.

Food prices rose 0.4 percent in May, clothing rose 0.

9 percent, housing and fuels 1.1 percent, furnishing and maintenance 0.

9 percent and health 0.8 percent.

Sri Lanka has one of the higher rates of inflation in Asia and policy rates have been below inflation for several months.

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