June 30, Colombo: Sri Lanka Central Bank today said the country's annual inflation grew only 0.9 percent in June falling from a year-on-year rate of 3.3 percent for the month of May.

The decline is continuing for the twelve months from a high of 28.2 recorded in June 2008.

Sri Lanka's Annual Average inflation dropped to the lowest level since April 2007, 12.5% in June from a 14.7% in May while the Colombo Consumers' Price Index (CCPI) increased slightly to 207.8 from 205.1 in May.

The Central Bank attributed the decline to the tight monetary policies of the Bank that targets the reserve money to keep the inflation checked.