Feb 22, 2018

Sri Lanka’s inflation declines to 5.4 percent

Sri Lanka’s inflation declines to 5.4 percent due to the drop in several essential commodities, the Central Bank announced today (22).

Inflation in January 2018, as measured by the change in the National Consumer Price Index (NCPI) (2013=100), which is compiled by the Department of Census and Statistics (DCS), decreased to 5.4 per cent in January 2018 from 7.3 per cent in December 2017, on year-on-year basis, CB said.

This decline is due to the high base prevailed in January 2017 as well as the monthly decline in Food prices in January 2018.

The change in the NCPI measured on an annual average basis decreased from 7.7 per cent in December 2017 to 7.6 per cent in January 2018.

When the monthly change is considered, the NCPI decreased from 126.6 index points in December 2017 to 125.8 index points in January 2018.

This monthly decline was mainly due to the decline in prices of the items in the Food category, particularly that of vegetables, green chillies, coconuts, red onions and rice. Nevertheless, prices of fresh fish and some fruits increased.

Meanwhile, price increases were observed in Restaurants and Hotels; and Transport subcategories in the Non-food category.