Inflation hits 5% in Sept.

Sri Lanka’s nationwide inflation in September 2019 determined under the National Consumer Price Index (NCPI) increased to 5% from 3.4% recorded in August on a year-on-year basis, the Department of Census and Statistics said yesterday.

The NCPI for all items for the month of September 2019 increased to 130.6 from 129.7 in August.

The increase in the index point by 0.71% was due to the expenditure value increase of food items by 0.68% and expenditure value increase of non-food items by 0.03%. 

The Year-on-Year inflation of food group has increased from 0.6% in August 2019 to 4.9% in September 2019 and that of non-food group has decreased from 5.6% to 5.1% during this month.

The increases in index values were reported for Vegetables (0.21%), rice (0.16%), Big Onions (0.11%), Banana (0.07%), Fresh Fish (0.06%), Coconuts (0.05%), Milk Powder (0.03%), Dried Fish (0.02%), Chilly Powder (0.02%) and Garlic (0.01%). However, decreases in index values were reported for Green Chilies (0.07%), Potatoes (0.03%), Coconut Oil (0.01%) and Red Onions (0.01%).

The increases in the index values of non‐food groups in September 2019 compared to the previous month was due to price increases in the groups of items ‘Education’ (International School fees) (0.05%), ‘Clothing and Footwear’ (0.01%) and ‘Miscellaneous Goods and Services’ (0.01%). 

Furthermore, very slight price increase was reported in the group of ‘Furnishing, Household Equipment Routine Household Maintenance’. However, decreases in prices were reported in groups of ‘Transport’ (Airline fare) (0.03%) and ‘Alcoholic Beverages, Tobacco and Narcotics’ (Betel leaves) (0.01%) compared to the preceding month. Meanwhile, the price index  of ‘Housing, Water, Electricity, Gas and Other Fuels’, ‘Health’, ‘Communication’, ‘Recreation and Culture’ and ‘Restaurants and Hotels’ groups remained unchanged during the month.

Contributions to the inflation in September 2019 from food group and non-food group are 2.11% and 2.87% respectively.

The moving average inflation for September 2019 was 2.3%. The corresponding rate for August 2019 was 2%.