Wednesday, 25 March 2020 18:30

Sri Lanka’s Inflation runs rampant following the corona virus crisis

Inflation in Sri Lanka hit a new high last month as the corona virus fear drove up demand for consumer goods and declined business activity in the country.


Headline inflation as measured by the year on-year (Y-o-Y) change in the National Consumer Price Index increased to 8.1 per cent in February 2020 from 7.6 per cent in January 2020, Central Bank announced.
This was driven by statistical effect of the low base prevailed in February 2019. Further, Food inflation (Y-o-Y) stood at 16.3 per cent in February 2020 while Non-food inflation (Y-o-Y) recorded at 2.1 per cent.
The change in the NCPI measured on an annual average basis increased to 4.5 per cent in February 2020 from 4.1 per cent in January 2020.
Change in NCPI Food Non-food vegetables and rice recorded decreases in February 2020. However, within the Non-Food category, prices of the items in Alcoholic Beverages and Tobacco; Transport; and Clothing and Footwear sub-categories recorded increases.
Continuing its decreasing trend for the fourth consecutive month, the core inflation (Y-O-Y) decreased to 3.4 per cent in February 2020 from 3.9 per cent in January 2020.
Meanwhile, annual average core inflation decreased marginally to 5.5 per cent in February 2020 from 5.6 per cent in January 2020.

(LI)

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