The Central Bank claims that the performance in the key sectors of the economy has raised the prospects for high economic growth in 2011. It would contribute positively towards containing inflation.
The Bank said that with the increased supply of vegetables and other crops in the market since the last week of February, a gradual reduction of prices has been observed, particularly in most varieties of vegetables, rice, fish and sea food, big onion, red onion, potato, coconut and coconut oil. As such, the Inflation Index is expected to decrease this month in comparison to last month. However, the Central Bank said a marginal increase in the annual average inflation is also estimated. The Bank further pointed out that prices are expected to remain low during the latter period of the year, with stocks being released to the market and the expected increase in the extent of cultivation during the Yala season.