Sri Lanka headline inflation increased in August; core inflation declined

inflation-august2019

Sep 24, 2019 (LBO) – Sri Lanka’s headline inflation as measured by the
year-on-year change in the National Consumer Price Index increased to 3.4 percent in August from 2.2 percent in July 2019.

The Central Bank said the low base that prevailed in the corresponding month of the previous year and the monthly increases of prices of items in both Food and Non-food categories contributed to this increase.

Meanwhile, in August, year-on-year Food and Non-food inflation recorded 0.6 percent and 5.6 percent respectively.

The change in the NCPI measured on an annual average basis increased marginally to 2.0 percent in August 2019 from 1.9 percent in July 2019.

Monthly change of NCPI recorded 0.2 percent in August 2019 and it was due to the price increases observed in the items of both Food and Non-food categories.

The core inflation, which reflects the underlying inflation in the economy, declined to 5.9 percent in August 2019 from 6.1 percent in July 2019 on year-on-year basis.

However, annual average core inflation increased to 5.0 per cent in August 2019 from 4.7 per cent in July 2019.