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Sri Lanka’s inflation drops to 2.9-pct in Feb 2015: Central Bank

Feb 27, 2015 (LBO) –Sri Lanka inflation declined to 2.9 percent in February 2015 from 3.2 percent in January 2015, on a year-on year basis, as a result of the downward revision of fuel prices in the interim budget of the new administration, the Central Bank said in a media release. The data measured by the change in the Colombo Consumers’ Price Index (CCPI) (2006/07=100), which is computed by the Department of Census and Statistics.

Sri Lanka's consumer prices rose 0.6 percent in the 12-months to February 2015, slowing sharply from 3.2 percent in January, and the lowest since the 0.5 percent reported in February 2004.

CCPI declined significantly by 2.3 percent in February 2015 compared to the previous month.

The downward revision of fuel prices effected during January 2015 and the reduction of price/import duty of both food and non-food items as proposed in the Interim budget 2015 contributed heavily towards this monthly decline in the index.

Liquid fuel, LP Gas and bus fares in the Non-food category recorded considerable declines in prices.

This monthly decline in inflation was further supported by the decline in the prices of food items such as rice, most varieties of fish and vegetables. However, prices of eggs, coconuts, fruits and some varieties of

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