Inflation, as measured by the Colombo Consumers’ Price Index (CCPI) (2002=100), computed by the Department of Census and Statistics, increased to 7.0 per cent in November 2010, on a year-on-year basis, from 6.6 per cent in October.
Meanwhile, the annual average inflation increased to 5.8 per cent in November from 5.4 per cent in the previous month, as a result of the price developments in the preceding 12 month period. The core inflation, which measures the price movement of non-food and non-energy items of the CCPI basket, remained at 5.6 per cent on a year-on-year basis, in November 2010 as in the previous month. On an annual average basis core inflation increased marginally to 6.4 per cent in November 2010 from 6.3 per cent in October 2010.
The contribution to the monthly increase of 1.1 per cent in the Index originated mainly from price increases in the sub category of Food and non-alcoholic beverages (2.1 per cent). Within the Food sub category price increases were registered for rice, vegetables, coconut, coconut oil, big onions, red onions, potatoes, and fish and sea food. Meanwhile, prices of fresh fruit, eggs and chicken declined.
Price increases were recorded in the sub categories of Clothing and footwear (1.7 per cent); Furnishing, household equipment and routine household maintenance (0.2 per cent); Health (0.2 per cent); Education (0.1 per cent); and Miscellaneous goods and services (0.1 per cent). A marginal increase was also observed in the sub category of Housing, water, electricity, gas and other fuels. Prices in the sub categories of Recreation and culture; Transport; and Communication remained unchanged during the month.