Sri Lankan inflation on the rise

[TamilNet, Friday, 30 June 2000, 19:24 GMT]
Sri Lanka's annual inflation rate increased by 0.3 percent in the June quarter, according to a report from the Department of Census and Statistics. This rate is based on the basis of 12 months' moving average and went up to 3.7 percent, from 3.4 percent in May 2000.

Analysts expect inflation to rise futher in the coming quarters as a result of the devaluation of the rupee and recent price increases aimed at funding the war.

The full text of the report follows:

The Colombo Consumers' Price Index [CCPI] for the month of June, 2000 was 2593.1. This shows an increase of 87.7 index points or 3.5 percent from the May index number 2505,4, This is an increase of Rs.177.323 in the Expenditure Value of 'Market Basket' when compared to May, 2000.

The increase in the CCPI for June, 2000 is mainly due to increase in prices of Sugar, Milk, Tea, Rice & Curry, Bread & Curry, Dried Chillies, Limes, Red Onions, Pork, most varieties of Fresh Fish and Dried Fish, Potatoes, most varieties of Vegetables, Electricity, Firewood and Bus Fares. The price increases in Food items can be mainly attributed to short supply of some goods to the Colombo Markets. The influence of Fuel price increase and the partial impact of devaluation of Sri Lanka rupee on prices of imported consumer goods also attributed to the significant increase in CCPI.

However, prices of Rice, Coconut Oil and Coconuts decreased during this month.

Annual inflation rate on the basis of 12 months moving average increased to 3.7 percent in June, 2000, up from 3.4 percent in May, 2000.