Sri Lanka’s national inflation accelerates to 6.2-pct in Dec

Sri Lanka rupee

ECONOMYNEXT- National inflation in Sri Lanka for the 12-months to December 2019 accelerated to 6.2 percent from 4.1 percent in November, the central bank said.

The National Consumer Price Index rose 1.6 percent to 135 points, after rising 0.8 percent in November.

Sri Lanka is aiming to keep inflation between 4-6 percent.

Core inflation, which does not take highly fluctuating items such as food and energy prices into consideration, was up 5.2 percent in December.

Food inflation in December was 8.6 percent compared to 4 percent in November, while non-food inflation was 4.2 percent.

Food prices generally rice in December due to lower supply and harvests from the main Maha season usually coming in January, as well as the year-end holidays.

The central bank said adverse weather in December also gave rise to food prices.

The central bank said communication, housing, utilities, energy and health services price levels fell due to government tax concessions. (Colombo/Jan23/2020)