National inflation in August up 4.5%

Sri Lanka’s national headline inflation, which captures the price movements across all provinces, rose 4.5 percent year-on-year (YoY) in August but decelerating from the previous month’s 5.8 percent, the data released by the Department of Census and Statistics (DCS) showed. 

On a month-on-month basis, the August consumer prices fell 1.6 percent against a 0.8 percent fall in July. 

The change in the National Consumer Price Index (NCPI), measured on an annual average basis, increased to 3.6 percent in August from 3.4 percent a month ago.

When the monthly change in the NCPI is considered, the NCPI decreased by 1.6 percent to 113.3 index points in August 2016 from 115.2 index points in July 2016. This monthly decrease was mainly due to the decrease in prices of the items in the food category. The prices of vegetables, green chillies, sugar, coconut, sprats, rice, dhal and red onions decreased during the month. 

Within the non-food category, the prices in health, communication and recreation and culture sub-categories decreased during August. 

Clothing and footwear, furnishing, household equipment and routine household maintenance, transport, restaurants and hotels and miscellaneous goods and services sub-categories increased. Meanwhile, the prices in alcoholic beverages and tobacco increased in August 2016. 

Nevertheless, the prices in the education sub-category remained unchanged during the month.

The NCPI core inflation, which reflects the underlying inflation in the economy, decreased to 6.0 percent in August from 6.8 percent in July, on a YoY basis. The annual average NCPI core inflation increased marginally to 5.6 percent in August 2016 from 5.5 percent in July.