Sri Lanka’s annual inflation slowed to a record low of 0.1 percent in March from 0.6 percent in the previous month, the Census and Statistics Department said yesterday.
Annual average inflation, measured on a 12-month moving average basis, also fell to a record low of 2.5 percent this month from 2.9 percent a month earlier.
The Colombo Consumers’ Price Index (base: 2006/07=100) for all items for March was 178.1 as announced by the Prices Division of the Department of Census and Statistics.
A decrease of 0.8 index point or 0.43 percentage was noted in March 2015 from February 2015 index which was 178.9. This decrease represents expenditure value of Rs.215.35 in the “Market Basket”.
On year-to-year basis, the highest contribution to the overall increase of around 1930.8 percent came from food commodities which increased by 2.82 percent in March 2015.
The new government in its interim budget announced tax cuts on 13 food items to give relief to people.
The non food items contributed a 2.68 percent decrease mainly due to water bills (0.12 percent), train & bus fare (0.21percent), kerosene oil (0.34 percent), L.P. gas(0.88 percent), petrol & diesel (1.13 percent) and electricity (1.38 percent).
Non food categories that experience increases were health(0.82 percent) and domestic services (0.12 percent). The total effect of these items contributed to the decrease in non food sub index.