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Sri Lanka’s inflation ends at 4.8-pct in 2019

ECONOMYNEXT- Sri Lanka’s inflation rose to 4.8 percent in the 12-months to December from 4.4 percent in November, with the index rising November with a rise in food prices, the statistics office said.

The Colombo Consumer Price Index grew to 132.4 in December from 131.7 in November.

The food sub index grew 2.4 percent in the month, with several commodities going up, ending the year up 6.3 percent.

Sri Lanka’s central bank has been injecting liquidity into the money market, after a soft-pegged rupee collapsed in 2018, altering the price structure of the island.

Tight liquidity kept prices down initially, but analysts had expected prices to pick up as the credit system gradually recovered.

Commodity prices are also gaining globally with the tightening activities of the Fed coming to an end.

In December Sri Lanka’s newly elected administration has cut taxes and also frozen fuel prices.

However, retailers had maintained prices without drastic increases during and after the currency fall. (Colombo/Dec31/2019)