Year on year inflation increased to 6.5% this month from 4.8% in December mainly due to the overall increase in food which went up by 4% in January. According to the Department of Census and Statistics, Sri Lanka’s 12 month moving average inflation measured by the Colombo Consumer Price Index (CCPI) was in the one digit figure at 3.1% in January 2010.

The press release stated that the combined effects of both domestically produced food and imported food commodities contributed to the increase in the food sub-index with rice, vegetables, coconuts and coconut oil increased on a year to year basis.

Under the non-food category, the prices of petrol and gas (Shell) both came down by 4% although the price of kerosene, diesel and gas (Laugfs) increased by 2%, 4% and 1% respectively. The press release added that general price levels increased in January 2010 compared to the prices in previous months, continuing to increase for the sixth consecutive month with the exception of August 2009.

The CCPI for all items for January 2010 was 216.4, an increase of 1.4% from the December 2009 index which was 213.5. This increase represents an expenditure value of Rs.535.47 in the ‘Market Basket.’