Annual average inflation dips to 1.7% in June: CB

The Central Bank said on Tuesday that inflation, as measured by the change in the Colombo Consumers’ Price Index (CCPI) (2006/07=100), which is compiled by the Department of Census and Statistics, declined marginally to 0.1%, on an year-on-year basis in June 2015, from 0.2% recorded in May 2015. 

Annual average inflation declined from 1.9% in May 2015 to 1.7% in June 2015. However, CCPI increased by 1.0% from May to June 2015. The monthly increase in CCPI was mainly caused by the increase in food prices. Prices of some varieties of vegetables, fresh fish, green chilies, red onions, limes, dhal, potatoes and sprats increased during June 2015. However, prices of many varieties of fruits, coconuts, coconut oil, big onions and green gram decreased during the month. 

Within the Non-food category, prices in Clothing and Footwear; Furnishing, Household Equipment and Routine Household Maintenance; and Recreation and Culture; sub categories increased, while all other sub categories, namely, Housing, Water, Electricity, Gas and other Fuels; Health; Transport; Education; Communication and Miscellaneous Goods and Services remained unchanged during the month.

Core inflation, which reflects the underlying inflation in the economy, increased to 2.8% in June 2015, from 2.6% in May 2015 on a year-on-year basis. Annual average core inflation declined marginally from 2.9% in May 2015 to 2.8% in June 2015.