Sri Lanka: New index to reduce inflation

Wednesday, 05 December 2007

Unable to control spiralling inflation rates, Sri Lanka has decided to change the way it measures inflation to ensure that it does not pass the 20pct barrier. Sri Lanka's Finance Ministry has formulated a brand new index called the CCPI(N) based on consumption patterns in 12 urban centres within the Colombo metropolitan. The new index put the country's 12 month inflation rate as of November at 19.3pct. Meanwhile, an index based on country wide consumption patterns placed inflation at 22.5pct. All developed countries and most developing countries use indexes based on country wide consumption.

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