The annual average rate of inflation, as measured by the Colombo Consumers’ Price Index (CCPI) computed by the Census and Statistics Department was 5.9 percent in 2010. This is the second lowest annual average (end year) inflation rate observed since 1999, the Central Bank said.
The year-on-year inflation stood at 6.9 percent in December 2010.
Favourable domestic supply conditions due to improvements in the agriculture sector as well as increase in supply of food commodities, mainly from the North and East helped contain price pressure to a certain extent, although seasonal increases of prices of some commodities were experienced during some months, the Central Bank said. In the international market, commodity prices increased with the recovery in the global economy. However, the impact of these price changes on the domestic inflation was arrested by import duty revisions. The unchanged prices for petrol and diesel during the year helped contain inflation.