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Sri Lanka's inflation falls to record low of 2.8%

Staff writer ▼ | July 1, 2014
Sri Lanka's inflation dipped to a record low of 2.8 percent in June as the country maintained single digit inflation for the 65th month in a row, the country's central bank said.
Sri Lanka
Sri LankaSri Lanka's inflation dipped to a record low of 2.8 percent in June as the country maintained single digit inflation for the 65th month in a row, the country's central bank said.


Inflation decreased to 2.8 percent in June 2014, on a year-on- year (YoY) basis, from 3.2 percent in the previous month.

The annual average inflation also continued its decelerating trend since June 2013 and reached 4.9 percent in June 2014, easing from 5.3 percent in May 2014, the central bank added.

"The relatively low increase in prices of items in the non-food category and the base effect contributed substantially to containing inflation at low levels in June 2014," the central bank said in its latest report. However, it acknowledged the prices of food items had increased significantly in June due to rainy weather that is likely to continue into July.

"Core inflation, being a more reliable predictor of future outlook for inflation, declined on an annual average basis to 3 percent in June 2014 from 3.1 percent in the previous month, recording the lowest level since its inception," said the report.


 

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