Year on year inflation as measured by the Colombo Consumer Price Index (CCPI) fell to 6.3% in March 2010 from 6.9% the previous month while the 12 month moving average inflation rate showed a slight increase to 3.2% in March from 3.1% in February 2010. According to the latest information released by the Department of Census and Statistics (DCS) this week, the general price level decreased in March 2010 with the CCPI declining for the first time since August 2009. The DCS noted that the CCPI for all items in March was 214.8 which represents a decrease of 2.1 index points or 1% from the February 2010 index which was 216.9. The decrease represents an expenditure value of Rs.387.86 in the ‘Market Basket.’
Month on Month
Prices of food commodities decreased due to the high supply of agricultural consumer goods, in particular rice, vegetables, fish and seafood and coconuts from the main producing areas during the month of March 2010. On average, the DCS stated that expenditure value on items in the Food group of the index decreased by Rs.395.55.
Of the total decrease of 1% in the index, food items accounted for a decrease of 1.01% mainly due to rice (0.5%), fish and seafood (0.25%), vegetables (0.15%), big onions (0.14%), dhal (0.08%), red onions (0.05%), coconut oil (0.04%), potatoes (0.03%) and coconuts (0.02%). An increase of 0.01% was reported in the clothing and footwear group.
Year on Year
The DCS noted that on a year on year basis, food commodities such as rice, vegetables, coconut and coconut oil which have significant weights in the CCPI basket recorded price increases. Under the non-food category, the price of gas, diesel and kerosene oil went up by 25%, 4% and 2% respectively while the price of petrol dropped by 4%. |
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