Sri Lanka inflation decreased to 0.4-pct in December 2018

Jan 21, 2019 (LBO) – Headline inflation measured by the National Consumer Price Index has decreased to 0.4 percent in December 2018 from 1.0 percent in November 2018, the Central Bank data showed.

The Central Bank said the decrease observed in year-on-year inflation in December is driven by the decrease of prices of items in both food and non-food categories.

Year-on-year food inflation decreased to -4.5 percent in December from -3.9 percent in November while
year-on-year non-food inflation also decreased from 5.2 percent in November to 4.7 percent in December.

The change in the NCPI measured on an annual average basis has decreased to 2.1 percent in December from 2.7 percent in November.

The month on month change of the NCPI was -0.5 percent in December mainly due to decrease the in the prices of the items in the Non-Food category.

The core inflation, which reflects the underlying inflation in the economy, remained at 3.1 percent in December on a year-on-year basis.

Meanwhile, annual average core inflation also remained unchanged at 2.4 percent in December 2018.