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Sri Lanka headline index falls below core inflation

Dec 04, 2008 (LBO) - Sri Lanka's controversial 'core' inflation index, which the Central Bank says it uses for monetary policy decisions, was at 18.
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1 percent in November, overtaking the so-called 'headline' figure which is at 16.3 percent, the latest data shows.
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The Central Bank said the headline Colombo Consumers' Price Index (CCPI) fell 16.
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3 percent in November from 20.2 percent in October with transport prices falling 3.
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1 percent, and housing, water and energy, falling 1.

9 percent.

Commodity Bubble

Prices of globally traded commodities, including oil and food, have gone through a long predicted 'deflationary collapse' caused by an inability of especially the US Federal Reserve bank to inject inflation to the global economy.

Though frantic attempts are under-way to 're-flate' the global economy through rate cuts, and 'quantitative easing' (buying up dud assets to create new money) prices in financial and housing assets as well as commodities continue to slide.

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Central bankers, politicians and economists, who said there was a 'food crisis' and an 'energy crisis' and a steep rise in global traded commodities and inflation was due to 'cost push' inflation are now nowhere to be seen.


Economic analysts with a firm grounding in class

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