Sri Lanka’s headline inflation decreased to 5.4-pct in March

Mar 31, 2020 (LBO) – Headline inflation as measured by the year-on-year change in the Colombo Consumer Price Index declined to 5.4 percent in March 2020 from 6.2 percent in February 2020, the Statistics Department said.

This was due to the decline in the prices of items in the Food category. Accordingly, Food inflation (Y-o-Y) declined to 12.8 percent in March 2020 from 14.7 percent in February 2020, while Non-food inflation (Y-o-Y) recorded at 2.5 percent in March 2020.

However, the change in the CCPI measured on an annual average basis increased to 4.7 percent in March 2020 from 4.6 percent in February 2020.

The monthly change of CCPI recorded at -0.9 percent in March 2020 and it was due to the price declines observed in the items of the Food category.

Prices of items in the Non-Food category recorded increases during the month owing to price increases of the items in Health (blood tests fee) and Transportation (airline fare) sub-categories.

Continuing its declining trend for the sixth consecutive month, the core inflation (Y-O-Y) declined to 2.9 percent in March 2020 from 3.2 percent in February 2020.

Meanwhile, annual average core inflation also declined to its four-month low of 4.9 percent in March 2020 from 5.1 percent in February 2020.