Inflation in Sri Lanka reaches 4.2-% in December

COLOMBO: Sri Lanka’s central bank has generated inflation of 4.2 percent in the 12-months 2020 as measured by the Colombo Consumer Price Index, which is within its target range of 4 to 6 percent, data from the state statistics office showed.

The 4.6 percent inflation was recorded despite printing money, amid weak private credit, Economy Next reported.

The Colombo Consumer Price Index rose 0.7 percent during the month of December to 138.0 points from 137.1 points in November.

In November, the 12-month inflation was 4.1 percent.

Food prices grew 9.2 percent during the 12-months.

Sri Lanka’s central bank has printed unprecedented volumes of money, but inflation has been muted, amid weak private credit in the middle of the year, Economy Next reported.

Food prices, which are frequently traded commodity where price discovery is faster, rose 9.2 percent in 2020.