April inflation declines to 5.2%

Friday, 1 May 2020 00:15 - - {{hitsCtrl.values.hits}}

Reduces from 5.4% in March but food price inflation increases

Inflation as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index declined to 5.2% in April 2020 from 5.4% in March 2020, the Census and Statistics Department said yesterday.

This was solely driven by the statistical effect of the high base prevailed in April 2019. Meanwhile, Food inflation (Y-o-Y) recorded at 13.2% in April 2020 and Non-food inflation (Y-o-Y) declined to 2.1% in April 2020 from 2.5% in March 2020.

The change in the CCPI measured on an annual average basis increased marginally to 4.8% in April 2020 from 4.7% in March 2020.

Monthly change of CCPI recorded at 0.1% was due to price increases observed in the items of the Food category. Within the Food category, prices of coconut, condiments, coconut oil, and dried fish recorded increases in April 2020.

However, timely intervention of the Government to reduce prices of certain food items, such as rice, dhal, big onion, and canned fish amidst the COVID-19 outbreak, moderated the price increases observed in the food category.

Meanwhile, prices of items in the Non-Food category, which usually exhibit increases in the month of April with seasonal demand, remained unchanged due to the lockdown imposed with the COVID-19 outbreak.

The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, increased to 3.1% in in April 2020 from 2.9% in March 2020. However, annual average core inflation declined to its five month low of 4.7% in April 2020 from 4.9% in March 2020.