Inflation rises in March 

Sri Lanka’s headline inflation, measured by the year-on-year change in the National Consumer Price Index (NCPI), increased to 2.9 per cent last month from 2.4 per cent in February mainly due to the low base prevailed in the corresponding month of the previous year. 

The March year-on-year Food and Non-food inflation recorded -2.3 per cent and 7.1 per cent, respectively, the Central Bank said on Tuesday.

The change in the NCPI measured on an annual average basis remained unchanged at 1.7 per cent in March.

“When the monthly change is considered, the NCPI declined by 0.2 per cent in March with the decrease observed in the prices of the items in the Food category, particularly that of rice, coconut and vegetables. However, within the Non-Food category prices of the items in Alcoholic Beverages and Tobacco; Transport (petrol and diesel); Clothing and Footwear; and Miscellaneous Goods and Services subcategories increased during the month,” the banking regulator said.

Core inflation, which reflects the underlying inflation in the economy, increased to 5.8 per cent in March compared to 5.5 per cent in February  on year-on-year basis, mainly due to increase in prices of items in the Non-food category, particularly in Alcoholic Beverages and Tobacco sub-category. Annual average NCPI Core inflation also increased to 3.3 per cent in March from 3 per cent in February.