Inflation at 8.8% in Oct.

Wednesday, 22 November 2017 12:00 - - {{hitsCtrl.values.hits}}

The year-on-year inflation based on NCPI has been compiled as 8.8% for October, slightly higher than the 8.6% recorded in the previous month.

Director General of Census and Statistics Dr. Amara Satharasinghe said for October 2017, the reported increase in inflation was mainly because of the comparatively lower price levels that prevailed in October 2016, particularly the prices of coconuts, rice and vegetables. Contributions to the inflation from the food group and non-food group in October 2017 are 6.4% and 2.4% respectively, whilst contributions of these two groups to the inflation in October 2016 were 2.3% and 2.8% respectively, reflecting the prevailing comparatively lower food prices in October 2016.

However, when compared to month-on-month changes, NCPI in October 2017 has increased to 124.8 from 123.3 reported in September 2017. This shows an increase of 1.5 index points or 1.2 percentage points in October 2017 as compared to September 2017. This month-on-month change was due to the increase of expenditure value of food items by 1.12% and non-food items by 0.08% respectively.

The increase in expenditure value of food items was due to the price increases in coconuts, vegetables, rice, green chilies, banana, red onions, limes and tea dust. However, decreases in expenditure value in the index were reported for fresh fish, eggs, potatoes, mangoes, dried fish and chicken.

The increase in expenditure value of non-food items in October 2017 compared to the previous month was due to the expenditure value increases in groups of ‘Restaurant and Hotels’, ‘Housing, Water, Electricity, Gas and Other Fuels’, ‘Alcoholic Beverages, Tobacco and Narcotics’ and ‘Miscellaneous Goods and Services’.

Further, the groups of ‘Clothing and Footwear’ and ‘Furnishing, Household Equipment and Routine Household Maintenance’ recorded very slight expenditure value increases compared to the preceding month. The expenditure value of the ‘Health’, ‘Transport’, ‘Communication’, ‘Education’ and ‘Recreation and Culture’ groups remained unchanged during the month.