Sri Lanka’s inflation at 4.5-pct in August 2014: Central Bank

August 30, 2014 (LBO) –Sri Lanka inflation continued its decelerating trend observed since June 2013 and reached 4.5 per cent in August 2014 compared to 4.7 per cent in July 2014, on an annual average basis the Central bank of Sri Lanka said in a media release.

Within the Non-food category, prices of items in the sub group of Clothing and Footwear, Communication, Recreation and Culture and Miscellaneous Goods and Services increased.

Prices in all the other sub groups, namely, Housing, Water, Electricity, Gas and other Fuels, Furnishing, Household Equipment and Routine Household Maintenance, Health, Transport and Education almost remained unchanged during the month compared to the previous month.

Core inflation, which indicates the underlying inflation in the economy, increased marginally in August 2014, over the previous month the bank said.

Accordingly, core inflation, on a YoY and annual average basis, increased to 3.9 percent and 3.2 percent, respectively, in August 2014 from 3.7 percent and 3.1 percent, respectively, in July 2014. The data is based on the change in the Colombo Consumers’ Price Index (CCPI) (2006/07=100), which is computed by the Department of Census and Statistics.

The year-on-year inflation also decreased to 3.5