National inflation slows to 4.1% in November

Sri Lanka’s national inflation, measured by the National Consumer Price Index (NCPI), slowed to 4.1 percent in November from 5.0 percent in October, on a year-on-year (YoY) basis.
Both Food and Non-food categories contributed towards the YoY inflation in November. The change in the NCPI measured on an annual average basis remained unchanged from last month at 4.0 percent in November.When the monthly change is considered, the NCPI increased from 114.7 to 116.6 index points from October to November. This monthly increase was mainly due to the increase in prices of the items in the Non-food category. Within the Non-food category, prices increased in the Clothing and footwear; Housing, water, electricity, gas and other fuels; Furnishing, household equipment and routine household maintenance; Health; Communication; Recreation and culture and miscellaneous goods and services subcategories. 

Meanwhile, prices increased slightly in the Transport and Restaurants and hotels subcategory, while the prices in Education subcategory remain unchanged. 
Within the Food category, prices of rice, coconuts, vegetables, limes and potatoes increased during the month. 
The prices in alcoholic beverages and tobacco also increased during 
November 2016. 
The price increases observed in Alcoholic beverages and tobacco; Health and Communication subcategories are mainly due to the reimposition of the value-added tax (VAT).
The NCPI core inflation, which reflects the underlying inflation in the economy, increased to 6.8 percent in November from 5.7 percent in October 2016. 
The annual average NCPI core inflation increased slightly to 5.8 percent in November 2016 from 5.7 percent in October 2016.