Sri Lanka's inflation rose in January

Headline inflation as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100)1 increased to 5.4 per cent in January 2020 from 4.8 per cent in December 2019. 

This was driven by monthly increase of prices of items in both Food and Non-food categories. Food inflation (Y-o-Y) increased substantially to a 25-month high of 11.7 per cent in January 2020 from 6.3 per cent in December 2019, while Nonfood inflation (Y-o-Y) stood at 2.9 per cent, according to the Census and Statistics Department.
The change in the CCPI measured on an annual average basis increased marginally to 4.4 per cent in January 2020 from 4.3 per cent in December 2019.
The monthly change of CCPI was recorded at 1.4 per cent in January and it was due to the price increases observed in the items of both Food and Non-food categories.
Within the Food category, prices of vegetables increased significantly due to supply shortages caused by adverse weather conditions which prevailed during the previous month. In addition, prices of coconut, red onions and fresh fruits also recorded increases in January 2020. Meanwhile, prices of items in the Non-Food category recorded an increase during the month owing to price increases of the items in Housing, Water, Electricity, Gas and other fuels (housing rent); Education (tuition fee); and Restaurants and Hotels sub-categories. However, reflecting the downward tax revisions introduced by the government with effect from December 1, 2019, prices of items in Health and Communication sub-categories decreased in January.
The core inflation, which reflects the underlying inflation in the economy, decreased to 3 per cent in January from 4.8 per cent in December 2019 on year-on-year basis. Annual average core inflation also decreased to 5.3 per cent in January from 5.5 per cent in December 2019, the department said. (BS)