April inflation seen at 6.3%, may nudge higher on power rates

Tuesday, 16 April 2013 00:26 - - {{hitsCtrl.values.hits}}

Reuters: Sri Lanka’s annual inflation in April is estimated at 6.3%, a Central Bank official said on Friday, adding it could creep up slightly if the Government raised power tariffs.

The country’s year-on-year inflation rate in March eased to 7.5% from a near-record high of 9.8% a month ago due to the improved supply of vegetables and a high base last year.

“If there is no administered price changes, the inflation will be at 6.3%,” Swarna Gunaratne, the Central Bank’s Chief Economist, told Reuters.

“Even if there is a price hike in electricity tariff, inflation will still be only some points higher than 6.3%,” she said.

Sri Lanka is considering raising electricity tariffs later this month, having hiked diesel and gasoline prices twice since December due to the losses of State-run energy firms.

The $ 59 billion economy’s annual inflation is on a falling trend mainly due to high base effect, the Central Bank has said.