Year-on-year inflation rose by 7 % by end November 2010 mainly due to supply side constraints in respect of several commodities, the Central Bank said.
“Food and non-alcoholic beverages accounted for over 70 % of this increase. Nevertheless, inflation, on an annual average basis, has remained around mid-single-digit levels in both 2009 and 2010,” it said, adding: “the recent monetary easing by the Central Bank has helped improve domestic credit conditions, and thereby supported the sustained recovery in domestic economic activity.
The external sector too has recorded encouraging performance in recent months. While domestic economic activity has rebounded strongly this year, it is expected that this growth momentum would continue into the next year too, supported by the recovery in the global economy.”