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High prices of firewood, cigarettes fail to ignite Sri Lanka’s inflation

Jan. 31 (LBO) ? Sri Lanka's annual inflation rate for January eased marginally to 11.1 percent from 11.6 percent, despite high prices in firewood and cigarettes, the Census & Statistics Deparment said Tuesday. Jan. 31 (LBO) ? Sri Lanka's annual inflation rate for January eased marginally to 11.1 percent from 11.6 percent, despite high prices in firewood and cigarettes, the Census & Statistics Deparment said Tuesday. The government uses the 12-month moving average ? as measured by the Colombo Consumer Price Index ? to calculate the country's inflation and index wages.

Inflation measured on a 12-month point-to-point basis was flat at eight percent.

Prices of food items ? which command a 60 percent share of the basket ? were mixed during the month with notable declines in rice, limes, potatoes and most varieties of vegetables.

However, there were notable price increases in firewood, bread, infant milk, sugar, fresh milk, salt, plantains, coconut oil, fresh fish, cigarettes, betel leaves and arecanuts, the statement said,

Sri Lanka's Central Bank expects year end inflation to ease up to eight percent from 11.6 percent in 2005.

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