Wednesday, 22 January 2020 14:39

Sri Lanka inflation increases amidst high food prices

Headline inflation as measured by the year on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100)1 increased to 6.2 per cent in December 2019 from 4.1 per cent in November 2019, Central Bank announced.


This was driven by monthly increase of prices of items in the Food category along with the statistical effect of the low base prevailed in December 2018.

Food inflation (Y-o-Y) increased substantially to 8.6 per cent in December 2019 from 4.0 per cent in November 2019, while Non-food inflation (Y-o-Y) remained unchanged at 4.2 per cent. The change in the NCPI measured on an annual average basis increased to 3.5 per cent in December 2019 from 3.0 per cent in November 2019.
Within the Food category, prices of vegetables, rice, red onions, coconuts and fish recorded increases in December 2019.

Meanwhile, prices of items in the Non-Food category recorded a decrease during the month owing to price decreases of the items in Communication; Housing, Water, Electricity, Gas and other fuels; Health; and Miscellaneous Goods and Services.

This was due to downward tax revisions introduced by the government with effect from 01st December 2019.

The core inflation, which reflects the underlying inflation in the economy, decreased to 5.2 per cent in December 2019 from 5.5 per cent in November 2019 on year-on-year basis.

However, annual average core inflation increased to 5.7 per cent in December 2019 from 5.6 per cent in November 2019.

(LI)

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