Sri Lanka inflation slows to 5.3-pct in May

May 31, 2010 (LBO) - Consumer prices in Sri Lanka's capital Colombo rose 5.3 percent in May 2010 from a year earlier, down from 5.8 percent in April, the third straight monthly fall, the government statistics office said. The 12-month moving average, which has been on the rise since March, rose to 3.6 percent from 3.4 percent in April 2010, the statistics office said.

But in the month of May the Colombo consumer price index rose 1.6 percent in absolute terms to 215.

9 from 212.6 points a month earlier.

In April the CCPI had fallen 1.0 percent.

The slowing down of inflation came despite persistent concern about inflationary pressures rising given heavy government spending, debt monetization and excess liquidity.