Sri Lanka Inflation At 22-Month Low In December

(RTTNews) - Sri Lanka's inflation sharply slowed in December to its lowest level in 22 months, data released by the Statistics Department revealed on Tuesday.

The Colombo Consumers' Price Index rose 4.7 percent year-on-year in the final month of the year, following a 5.6 percent increase in November. Headline inflation slowed sharply for the second straight month and was the lowest since February 2012.

Month-on-month, consumer prices were flat in December, after 0.2 percent gain in each of the previous two months.

The annual average inflation was 6.9 percent in December this year versus 7.6 percent in 2012.

On December 9, the bank left the key interest rates unchanged, after hiking them by 50 basis points in October.

In the Monetary Policy Review in December, Sri Lanka's central bank said the outlook for inflation continues to remain favourable supported by subdued international commodity prices, improved domestic supply conditions and well contained demand driven inflationary pressures.

The bank has projected inflation to remain benign, at mid-single digit levels throughout 2014 as well.