Mon, 02 Aug 2021 Today's Paper

Colombo inflation eases to 4.3% as food prices fall

1 September 2016 12:02 am - 0     - {{hitsCtrl.values.hits}}

A A A

Consumer prices in Colombo have slowed to 4.3 percent during the 12 months to August from 5.5 percent in July, recording the second consecutive monthly decline in headline inflation, as the food prices marked a significant drop in the month, the data from the Census and Statistics Department showed.


On a month-on-month (MoM) basis, the headline inflation in August declined by 1.7 percent after rising 0.2 percent in July. 


The prices of foods on a MoM basis fell fast by 3.7 percent as many items recorded decline in prices. Prices of vegetables, green chillies, sugar and dried fish saw steep declines in prices during August compared to July.


Meanwhile, on a year-on-year (YoY) basis, food prices rose by 5.6 percent, slower than a 8.1 percent YoY increase in July.


Economists say August has historically been a month food prices ease but this year August has seen sharper decline.

Sri Lanka this week kept its key policy rates unchanged after increasing them by 50 basis points in July as the authorities were worried of higher headline inflation fuelled by a steep growth in private credit.


Sri Lanka’s banking sector gave Rs.76 billion worth of credit to the private sector, accelerating from Rs.60 billion a month earlier, but the Central Bank expects credit growth to ease with the tightening measures already in place. In June, Sri Lanka’s prices rose by 6 percent YoY accelerating from a 4.8 percent YoY inflation in May.


Meanwhile, the non-food prices rose by 0.4 percent on a MoM basis from a 0.2 percent contraction in July as the increase in bus fares took toll.


On a YoY basis, the August non-food price inflation recorded 3.1 percent, slightly higher than 3.0 percent in July.


The core-inflation, the changes in prices other than the food and energy, also eased to 4.7 percent YoY from 5.8 percent growth in July. The moving average inflation accelerated to 3.1 percent from 2.7 percent in July, causing some concerns 
to the policymakers.


The Central Bank expects to maintain the headline inflation at mid-single digit levels during the rest of the year.

 

 

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

  Comments - 0

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment


Ugly sporting truths Sport scholarships thrive in culture of corruption

Sadly the cohort of perpetrators include egotistical leaders, coaches and eve

JR Jayewardene and the July 1983 Anti-Tamil Violence

July 24, 1983 was the day on which a destructive spree of anti-Tamil violence

“Medamulana Dynasty”: Four Sons and Three Grandsons of Don Alvin Rajapaksa

Basil Rohana Rajapaksa was sworn in as Finance minister in the Government of

Site survey near Akasa Chaitya: Is it the end of Yala?

The Yala National Park has been at the receiving end of human disturbances fr



See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.