Inflation, as measured by the Colombo Consumers’ Price Index (CCPI), eased on a year-on-year basis (YoY) to 6.4 % in September for the second consecutive month, from 7.0 % in August 2011, the Central Bank said this week.
It said the annual average inflation moved up marginally to 7.2 % in September from 7.1 % in the previous month, as a result of the price developments in the preceding twelve month period. Core inflation fell sharply to 6.9 % from 7.8 % while in terms of annual average, the core inflation increased slightly to 7.6 % in September from 7.5 % in August 2011.
Meanwhile earnings from exports and expenditure on imports grew further on a YoY basis in July 2011. Earnings from exports reached a level of US$958 million in July, up by 9.4 % in July 2010 while expenditure on imports rose by 58.2 % to US $1,777 million.
During the first seven months of 2011, the cumulative earnings from exports and expenditure on imports have increased by 30.3 % to US$6,014 million and 48.3 % to US $11,091 million, respectively. As a result, the trade deficit expanded to US $5,077 million.
During July 2011, workers’ remittances increased by 21.1 % to US $415 million over the same month of 2010. Cumulative inflows on account of workers’ remittances amounted to US $2,922 million during the first seven months of 2011. Earnings from tourism grew at a healthy rate of 50 % to US $451 million during the first seven months of the year while total foreign inflows to the government (including Sovereign Bond proceeds of US $1 billion) during the same period amounted to approximately US $2,754 million.
Foreign direct investments (FDI) in the first half of 2011 amounted to US $413 million.
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