May 30, Colombo: Sri Lanka's inflation, as measured by the change in the Colombo Consumers' Price Index (CCPI) , dropped significantly in May 2014 to 3.2 percent on a year-on-year basis after rising to 4.9 percent in previous month, figures released by the Central Bank showed.
The year on year inflation has been in single digit figures for 64 months continuously. This month's inflation is the lowest rate recorded since March 2012.
Annual average inflation, which declined since June 2013, declined further to 5.3 percent in May 2014, from 5.6 percent in April 2014.
The sharp deceleration of inflation was a result of the moderation in prices of some items in the Non-food category and the high base prevailed in May 2013, the Central Bank said.
The general price level increased in May 2014 by 0.6 percent compared to the prices in the previous month raising the absolute CCPI computed by the Department of Census and Statistics to 179.5 from 178.4 in April.
The increase in the index was totally attributed to the 1.3 percent increase in food prices, mainly due to the increase in prices of vegetables, fish and onions resulted from less supply during the month.