Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010InflationThe inflation continued to remainlow at around mid single digit levelsin 2010. The annual average inflation,as measured by the ColomboConsumer’s Price Index (CCPI)(2002=100), which was deceleratingsince November 2008, reached alow of 3.1 percent in February 2010,increased gradually to 5.9 percent inDecember 2010. Year on year infla-tion, which was 6.5 percent in January2010, decelerated to 4.3 percent inJuly 2010, but increased gradually to6.9 percent in December 2010.For annual average inflation, thecontribution from domesticlly producedgoods during the year was 85.2percent while the balance came fromimported items.However, the domestic supply sideimprovements, measures taken by thegovernment to bring down escalatingprices on essential commodities andgranting of duty waivers pertaining tokey food and other consumer itemsas well as prudent monetary policystance were conducive to a relativelylow and stable level of inflation during2010.30Chart 1.73 > Inflation 2008 - 2010 - CCPI (Base: 2002=100)252015Percent10502008 JanFebMarAprMayJunJulAugSepOctNovDec2009 JanFebMarAprMayJunJulAugSepOctNovDec2010 JanFebMarAprMayJunJulAugSepOctNovDecYear on Year Change % Annual Average Change %Source: Department of Census and Statistics135