Saturday, 30 May 2020 12:42

Sri Lanka’s inflation declines further to 4 percent in May

CCPI based Inflation declined further in May 2020Headline inflation as measured by theyear-on-year (Y-o-Y) change in the Colombo Consumer Price Index declined to 4.0 per cent in May 2020 from 5.2 per cent in April 2020, Central Bank announced.

This was solely driven by the statistical effect of the high base prevailed in May2019. Food inflation (Y-o-Y) declined to 9.9 per cent in May 2020 from 13.2 percent in April 2020.

Further, Non-foodinflation (Y-o-Y) also declined to 1.6 percent in May 2020 from 2.1 per cent inApril 2020.

The change in the CCPI measured on anannual average basis also declinedmarginally to 4.7 per cent in May 2020 from 4.8 per cent in April 2020.

Monthly change of CCPI recorded at 0.4 per cent was due to price increasesobserved in the items of both Food andNon-food categories. Within the Food category, prices of fish, dhal and rice recorded increases in May 2020.

Meanwhile, prices of items in the Non-Food category recorded increases during the month owing to price increases of the items in Transportation; and Miscellaneous Goods and Services sub-categories. The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, declined to 2.9 per cent in May 2020 from 3.1 per cent in April 2020.

Further, annual average core inflation also declined to its twelve months low of 4.4 per cent in May 2020 from 4.7 per cent in April 2020.

Sri Lanka’s rupee fell sharply as the central bank printed money in March and April, while a Coronavirus crisis also led to a consumption downturn.

(LIN)

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