- Core inflation increases to 5.1%
Sri Lanka’s countrywide consumer prices as measured by year-on-year (YoY) change in the National Consumer Price Index (NCPI) rose to 1.2 percent in January 2019 from 0.4 percent in December 2018, driven by base effect and increased non-food prices.
The YoY non-food inflation increased to 6.5 percent in January from 4.7 percent in December. However, YoY food inflation decreased further to -4.8 percent in January from -4.5 percent in December.
The change in the NCPI measured on an annual average basis decreased to 1.8 percent from 2.1 percent in December.
The month-on-month change of the NCPI was increased by 0.2 percent in January 2019, mainly due to increase in prices of items in the non-food category comprising housing, water, electricity, gas and other fuels sub-category. Housing rent recorded the highest increase.
Further, prices of items in the alcoholic beverages and tobacco, clothing and footwear, furnishings, household equipment and routine household maintenance sub-categories also reported increases during the month.
Meanwhile, prices of the items in the food category decreased where vegetables, coconuts, limes, big onions, potatoes and green chilies recorded prominent decreases.
The core inflation, which reflects the underlying inflation in the economy, increased significantly from 3.1 percent in December to 5.1 percent in January on YoY basis.
Meanwhile, annual average core inflation also increased from 2.4 percent to 2.7 percent.