National consumer price inflation up to 8.8-pct in October

Nov 22, 2017 (LBO) – Sri Lanka’s national consumer price inflation (year on year) is up to 8.8 percent in October from a year ago, data shows.

Issuing a statement the Department of Census and Statistics said Tuesday that the reported increase in inflation is mainly because of the comparatively lower price levels prevailed in October 2016 particularly, prices of coconuts, rice and vegetables.

NCPI has been compiled as 8.8%. The inflation reported for the month of September 2017 was 8.6 percent.

Contributions to the inflation from food group and non-food group in October 2017 are 6.4 percent and 2.4 percent respectively, whilst contributions of these two groups to the inflation in October 2016 were 2.3 percent and 2.8 percent respectively reflecting prevailed comparatively lower food prices in October 2016.

However, the department says when compared to month on month changes, NCPI in October 2017 has increased to 124.8 from 123.3 reported in September 2017.

“This shows an increase of 1.5 index points or 1.2 percentage points in October 2017 as compared to September 2017.”

This month on month change was due to the increases of expenditure value of food items by 1.12 percent and non-food items by 0.08 percent respectively.

The increase in expenditure value of food items was due to the price increases in coconuts, vegetables, rice, green chilies, banana, red onions, limes and tea dust. However, decreases in expenditure value in index were reported for fresh fish, eggs, potatoes, mangoes, dried fish and chicken.

The increase in expenditure value of non food items in October 2017 compared to the previous month was due to the expenditure value increases in groups of ‘Restaurant and Hotels’, ‘Housing, Water, Electricity, Gas and Other fuels’, ‘Alcoholic beverages, Tobacco and Narcotics’ and ‘Miscellaneous Goods and Services’. Further, the groups of ‘Clothing and Footwear’, and ‘Furnishing, Household equipment and Routine household maintenance’ recorded very slight expenditure value increases compared to the preceding month. The expenditure value of ‘Health’, ‘Transport’, ‘Communication’, ‘Education’ and ‘Recreation and Culture’ groups remained unchanged during the month.