May 31, 2008	Saturday	Jamadi-ul-Awwal 25, 1429

COLOMBO, May 30: Annual inflation in Sri Lanka hit 26.2 per cent in May, according to official data on Friday, driven by higher food, fuel and other prices.

The inflation rate was calculated using the new Colombo Consumer Price Index which tracks price movements since 2002, the statistics department said.

The level was a record high according to the index, which was released for the first time on Friday.

The statistics department said it was discontinuing the previous Colombo Consumer Price Index, which has been tracking price movements since 1952. Under the old index, inflation hit a decade-high of 29.9 per cent in April.

“We will not release the old index any more,” statistics chief Suranjana Vidyaratne said.

She declined to elaborate on the reasons for the decision but critics say the move is aimed at showing a lower inflation rate.—AFP