Sri Lanka’s headline inflation eases in November for the second consecutive month

Headline inflation, as measured by the year-on-year (Yo-Y) change in the National Consumer Price Index (NCPI, 2013=100)1 decreased to 65 per cent in November 2022 from 70.6 per cent in October 2022.

Similarly, food inflation (Y-o-Y) decreased to 69.8 per cent in November 2022 from 80.9 per cent in October 2022, while non-food inflation (Y-o-Y) decreased to 60.4 per cent in November 2022 from 61.3 per cent in October 2022, the Central Bank said this week.

The decline in the monthly change of the NCPI observed in October 2022 continued in November 2022 recording 0.27 per cent.

This was mainly contributed by the monthly decrease of the prices of the items in the food category, which amounted to 0.49 per cent. Accordingly, within the food category, significant decreases were observed in prices of Fresh Fish, Sugar, Rice, Dry Fish and Chicken. Nevertheless, the contribution from the non-food category was 0.23 per cent in November 2022 driven by the price increases observed in Clothing and Footwear, Health (Payments to Private Hospitals/Nursing Homes), Furnishing, Household Equipment and Routine Household Maintenance, and Miscellaneous Goods and Services sub-categories during the month. However, Transport (Petrol) and Housing, Water, Electricity, Gas and Other Fuels (Materials for Maintenance) sub-categories decreased in November 2022.

Meanwhile, annual average inflation rose to 46.7 per cent in November 2022 from 42.2 per cent in October 2022. The core inflation (Y-o-Y), which reflects the underlying inflation in the economy decreased to 60.1 per cent in November 2022 from 62.4 per cent in October 2022, while annual average core inflation increased to 40 per cent in November 2022 from 35.7 per cent in October 2022.