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5%
dip in inflation index a ‘turnaround’ for CB
A mere 5% dip in the key index measuring inflation in July
in comparison to the previous month is being treated by the
Central Bank as a “turnaround.”
The Bank last week said that the inflation, which became a
global concern over the past year with the unexpected surge
in world fuel and food prices, has shown signs of deceleration
in Sri Lanka from July 2008.
“Since reaching a peak of 28.2 per cent, as measured
by the year-on-year change in the Colombo Consumers’
Price Index (base=2002) in June, inflation has indicated a
turnaround, as expected, by falling slightly to 26.6 per cent
in July,” the Bank said following the August monetary
policy review last week.
According to the Bank this decline was supported by improvements
in domestic supply side factors and the containment of demand
pressures.
“With the easing of commodity prices in international
markets, external price pressures on domestic inflation are
likely to further abate in the months ahead,” said an
optimistic Central Bank.
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