Inflation dips to all-time low levels

Wednesday, 1 April 2015 01:32 - - {{hitsCtrl.values.hits}}

Inflation for the month of March continued its decelerating trend with the point to point dipping to an all-time low level of 0.1% while its annualised average followed suit as well to record 2.50%. The Central Bank said inflation, as measured by the change in the Colombo Consumers’ Price Index (CCPI) (2006/07=100), which is computed by the Department of Census and Statistics, decreased to 0.1% on an year-on-year basis in March 2015, from 0.6% recorded in February 2015. Annual average inflation also declined from 2.9% in February 2015 to 2.5% in March 2015. CCPI declined by 0.4% from February to March 2015. The main contributor for this decline was the moderation of food prices during the month. Prices of many vegetable varieties, rice, wheat flour, some varieties of dried fish and bakery products declined in March 2015, compared to the prices prevailed in February 2015. However, prices of meat, some varieties of fresh fish, some varieties of fruits, coconuts and some prepared foods recorded increases during the month. Within the Non-food category, sub groups of Housing, Water, Electricity, Gas and other Fuels; and Transport declined as a result of the full impact realised from the downward revision of LP gas prices and bus fares as per the interim Budget in February 2015. However, prices in the sub categories of Clothing and Footwear; Furnishing, Household Equipment and Routine Household Maintenance; Health; Recreation and Culture; and Miscellaneous Goods and Services recorded increases. Average prices in Education and Communication sub categories remained unchanged during the month. Core inflation, which reflects the underlying inflation in the economy, increased to 1.4% in March 2015, from 0.8% in February 2015 on a year-on-year basis. Annual average core inflation declined to 3.0% in March 2015, from 3.2% in February 2015.