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Wednesday, August 06, 2008 - 7.44 GMT |
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Inflation drops to 26.6 per cent |
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The rate of inflation as measured by the
Colombo Consumers’ Price Index (CCPI) on a
year on year basis dropped to 26.6 per cent
in July, 2008 from 28.2 per cent recorded in
June, 2008. The monthly increase in the
index also decelerated significantly to 0.2
per cent compared with an increase of 3.7
per cent in the previous month, said the
Central Bank of Sri Lanka in a press release
recently.
“The annual average rate, however, continued
to rise from 21 per cent to 21.9 per cent,
reflecting the cumulative effect of the
increase in the index during the preceding
12 month period,” it further said.
This deceleration is expected to continue
further during the remaining part of the
year in response to the tight monetary
policy package being pursued by the Central
Bank, it forecasted.
The deceleration of the general price level
in July was mainly due to the price
decreases of domestically produced food
items that resulted from increased supply
conditions. This
was reflected in the decline of 1.5 per cent
in the food sub index which accounts for 47
per cent of the total index. However, the
total impact of this decline on the overall
price level was offset by the increases in
other categories such as healthcare (5.3 per
cent), education (4.1 per cent), transport
(3.1 per cent) and house maintenance (1.4
per cent).
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