Inflation declines in April 2013

Wednesday, 1 May 2013 00:31 - - {{hitsCtrl.values.hits}}

The Central Bank said yesterday inflation, as measured by the Colombo Consumers’ Price Index (CCPI) (2006/07=100) computed by the Department of Census and Statistics decreased to 6.4% on a year-on-year (YoY) basis in April 2013 from 7.5% in the previous month.

The inflation rate on an annual average basis remained unchanged at 8.8% in April 2013 as recorded in the previous month, the Bank added.

Core inflation on a YoY basis also decreased to 6.1% in April 2013 from 6.8% in the previous month while it increased marginally on an annual average basis to 6.5% in April 2013 from 6.4% in March 2013.

The CCPI decreased by 0.5% in April 2013 over the previous month, with the Index declining in absolute terms to 170.0 from 170.8 in March 2013. The contribution to the monthly decrease in the Index came mainly from price decreases in the Food category by 1.4%.

The price of rice, most varieties of vegetables, fruits, fresh fish, eggs, big onions, red onions and limes decreased during the month. However, an increase in the prices of some varieties of dried fish, dhal, coconut and prepared food was reported.

Within the Non-Food category, prices increased in the sub-categories of Clothing and Footwear (by 0.3%); Housing, Water, Electricity, Gas and Other Fuels (by 0.9%); Furnishing, Household Equipment and Routine Household Maintenance (by 0.1%); Recreation and Culture (by 0.5%); Education (by 0.1%) and Miscellaneous Goods and Services (by 0.1%).

An increase observed in the sub category of Housing, Water, Electricity, Gas and Other Fuels was due to the partial impact of the upward revision in the electricity charges with effect from 20 April 2013. Meanwhile, the prices in the sub-categories of Health; Communication; and Transport were unchanged during the month.