Jan 02, Colombo: Sri Lanka’s annual average rate of inflation stabilized at the mid-single digit level at the end of 2011 decreasing from a 6.2 percent in January to a 4.9 percent in December, the Central Bank noted in a press release on Monday.
The monetary authority said the contribution to the annual average increase of 6.7 per cent in the Index came mainly from price increases in the sub category of Food and nonalcoholic beverages.
Crop destructions and transport disruptions due to the floods situation in early 2011 led to significant increases in prices of locally produced agricultural and other food commodities, especially of vegetables contributing to the higher inflation in the first three months of the year, the Central Bank said.
The inflation on a year-on-year basis has increased until April and then decreased with the improved supply conditions.
The average price of rice was lower in 2011 when compared to 2010, despite a sharp drop in production in the Maha season but the average prices of vegetables increased by 7.4 percent in 2011, when compared to that of 2010.
Despite the growth in fish and sea food production by 15.5 percent during the first ten months of the year, the average price of fresh fish increased by 6.0 percent in the first ten months of 2011 when compared to the corresponding period of 2010.
The upward price revisions of fuel and LP gas on several occasions during the year also had an impact on the Consumer Price Index both directly and indirectly, the Bank reported.