Tuesday August 21, 2018

Sri Lanka national inflation surges to 8.2-pct in Feb

Mar 21, 2017 17:23 PM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - Sri Lanka's country-wide price rises measured by the National Consumer Price Index rose 8.2 percent in the 12 months to 7 February 2017, accelerating from 6.5 percent in January, the statistics office said.

The index rose 0.5 percent in February to 119.9 points. In January, prices rose 1.1 percent.

Food prices rose 10.2 percent in the 12 months and non-foods rose 6.8 percent, the statistics office said.

A re-based Colombo Consumer Price Index rose 6.8 percent in the 12 months to February.

Sri Lanka's Central Bank loosened monetary policy from November, printing money to bring down long-term interest rates and purchasing bills outright up to 273 days with printed money, despite strong credit growth.

Policy was also extra loose through January, after tens of billions of rupees were printed to repay a maturing bond.

Unlike in 2015 and 2016, global commodity prices are rising, indicating rising inflationary pressure, and the US had also started to tighten policy.

The US hiked rates twice, and financial centres with stable exchange rates and economies including Dubai and Hong Kong raised overnight rates. Hong Kong does not have a true policy rate. (Colombo/Mar21/2017)


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