CB says inflation decreased further in September

Central Bank yesterday said inflation, as measured by the Colombo Consumers’ Price Index (CCPI) (2006/07=100), computed by the Department of Census and Statistics, decreased on a year-on-year basis (YoY) to 6.4% in September 2011 for the second consecutive month, from 7.0% in August 2011.

Meanwhile, the annual average inflation moved up marginally to 7.2% in September from 7.1% in the previous month, as a result of the price developments in the preceding twelve month period.

The core inflation (YoY) decreased sharply to 6.9% from 7.8% while in terms of annual average, the core inflation increased slightly to 7.6% in September from 7.5% in August 2011.

Meanwhile, the general price level as indicated by the monthly index recorded a marginal increase of 0.3% in September 2011 over the previous month, with the Index increasing in absolute terms to 151.7 from 151.3.

The contribution to the monthly increase in the Index came mainly from price increases in the sub category of Food and non alcoholic beverages (0.1%). Within the Food sub category, prices of almost all varieties of rice, coconut oil, fish and sea food and eggs declined due to improvements in supply, while prices of most varieties of vegetables, fruits, red onions, big onions, chicken, green chillies and limes increased. Further, prices in the sub categories of Clothing and footwear (0.3%); Housing, water, electricity, gas and other fuels (1.0%); Furnishing, household equipment and routine household maintenance (0.1%); Recreation and culture (0.6%); and Miscellaneous goods and services (0.2%) increased. Meanwhile, the prices in the sub categories of Health; Transport; Communication; and Education remained unchanged during the month.