Sri Lanka's inflation, as measured by the change in the Colombo Consumers' Price Index (CCPI) increased to 5 percent in May 2019 from 4.5 percent in April 2019, Central Bank announced this week.
The month on month change of the CCPI increased by 1.6 per cent in May 2019 with expenditure value of food and non food items recording slight uptick, CB officials said.
During the period, crude oil prices followed a mixed performance. Price increase was mainly supported by the OPEC led supply cuts and the trade war between the U.S. and China.
At the end of the week, fuel prices declined as the U.S. imposed tariffs on imports from Mexico, stoking fears on global economic growth.
Overall, Brent and WTI prices fell by US$ 2.7 per barrel and US$ 2.5 per barrel, respectively, within the period.
The reserve money decreased compared to the previous week mainly due to the decrease in currency in circulation and deposits held by the commercial banks
The total outstanding market liquidity was a surplus of Rs.71.23 bn by end of the week, compared to a surplus of Rs. 72.78 bn by the end of last week.
Net Credit to the Government from the banking system declined by Rs. 18.9 bn in April 2019.
Credit to public corporations recorded an increase of Rs. 23.1 bn in April 2019. Credit extended to the private sector decreased by Rs. 43.4 bn in April 2019.
(LI)