Sri Lanka's key inflation rate eased to 12% in June from 25.2% in May, the statistics department said on Friday, showing a glimmer of recovery for the crisis-hit economy.

Soaring inflation has battered the economy for more than a year after a severe foreign exchange crisis set off the Indian Ocean island's worst financial crisis in seven decades.

The Colombo Consumer Price Index (CCPI) reflected a sharp reduction in food inflation to 4.1% in June from 21.5% in May. Non-food inflation was 16.2%, the Census and Statistics Department said in a statement.

The CCPI, a lead indicator for broader national prices, tracks inflation in Colombo, the biggest city. (Reporting by Uditha Jayasinghe; Editing by Christina Fincher)