Inflation rose in December, DCS says
View(s):Headline inflation in Sri Lanka as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100) increased to 6.2 per cent in December 2019 from 4.1 per cent in November 2019.
This was driven by monthly increase of prices of items in the Food category along with the statistical effect of the low base which prevailed in December 2018. Food inflation (Y-o-Y) increased substantially to 8.6 per cent in December 2019 from 4 per cent in November 2019, while Non-food inflation (Y-o-Y) remained unchanged at 4.2 per cent, according to the Department of Census and Statistics.
The change in the NCPI measured on an annual average basis increased to 3.5 per cent in December 2019 from 3 per cent in November 2019.
The monthly change of NCPI was recorded at 1.6 per cent in December 2019 and it was solely due to the price increases observed in the items of the Food category caused by adverse weather conditions prevailed during December 2019.
Within the Food category, prices of vegetables, rice, red onions, coconuts and fish recorded increases in December 2019. Meanwhile, prices of items in the Non-Food category recorded a decrease during the month owing to price decreases of the items in Communication; Housing, Water, Electricity, Gas and other fuels, Health, and Miscellaneous Goods and Services sub-categories due to downward tax revisions introduced by the government with effect from December 1.
The core inflation, which reflects the underlying inflation in the economy, decreased to 5.2 per cent in December from 5.5 per cent in November on a year-on-year basis. However, annual average core inflation increased to 5.7 per cent in December from 5.6 per cent in November.