Sri Lanka inflation dips to 7.3-pct in December 2017

Jan 23, 2018 (LBO) - The overall rate of inflation as measured by National Consumer Price Index (NCPI)  on year on year basis was down to 7.3 percent in December 2017 when compared with 8.4 percent November 2017, according to the Department of Census and Statistics. Issuing a statement the department said  Y on Y inflation of food group reported for the month of December 2017 was 12.8 percent while that for non food group was 2.9 percent. The NCPI for all items for the month of December 2017 was 126.6. However, an increase of 0.2 index points or a percentage of 0.2 was reported in December 2017 compared to that of November 2017 for which the index was 126.4. "This increase represents increase in expenditure value of 62.38 rupees in the “Market Basket”". Contributions to the increase in NCPI on month on month basis was based on an increase in the index point by 0.15 percent due to the expenditure value increases of food items by 0.12 percent and non‐food items by 0.03 percent. respectively. The increases in expenditure value of food items in index were reported for Vegetables (0.36%), Fresh fish (0.14%), Red onions (0.08%), Coconuts (0.04%), Papaw (0.03%), Eggs (0.02%), Coconut oil (0.02%) and Tea dust (0.01%). However, decreases in expenditure value in index were reported for Rice (0.22%), Green chilies (0.14%), Banana (0.07%), Mysore dhal (0.05%), Potatoes (0.05%), Limes (0.05%) and Dried fish (0.02%). The increases in expenditure value in index were reported for non food commodity groups of ‘Transport’ (0.03%) and ‘Clothing and Footwear’ (0.01%). Further, the groups of 'Furnishing, Household equipment and Routine household maintenance', ‘Restaurants and Hotels’ and ‘Miscellaneous Goods and Services’ recorded very slight expenditure value increases compared to the previous month. However, decrease in expenditure value in index were reported for group of ‘Alcoholic beverages, Tobacco and Narcotics’ (0.01%). The expenditure value of ‘Housing, Water, Electricity, Gas and Other fuels’, ‘Health’, ‘Communication’, ‘Recreation and Culture’    and ‘Education’ groups remained unchanged during the month.