Financial Times

Consumer prices rise in November
Consumer price levels on an overall scale rose in November over October in line with previous seasonal patterns, the Central Bank said.

The seasonal slump in harvest, aggravated by adverse weather conditions mitigated the impact of the reduction in VAT on essential food items, resulting in higher food prices, which led to the resultant increase in overall prices, the Bank said in its monthly statement on consumer price trends.

The Colombo Consumer Price Index (CCPI) registered 3826.2 in November, up 3.4 per cent over the previous month. The index in November 2004 when compared with November 2003 (the point to point change) rose to 13.1 per cent from 12.1 per cent in October and 4.5 per cent in November 2003. Thus the annual average increase of the index rose to 6.8 per cent from 6.1 percent in October 2004.

The Central Bank-computed consumer index rose by 2.8 per cent in November over October, conforming to the historical seasonal average of the monthly increase in November over October during the last five years, however at a higher rate.

The food category was the major contributor to the monthly increase in the Bank index. Rice, coconut, most varieties of fish and vegetables and most condiments, coconut oil, potatoes and wheat flour registered significant price increases. Dhal, a few varieties of vegetables, leafy vegetables and fish, certain dried fish varieties, most varieties of fruits and salt experienced price decreases during the month.

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