Inflation at single digit levels for 39th month: Central Bank

Inflation as measured by the Colombo Consumers’ Price Index (CCPI) (2006/07=100), computed by the Department of Census and Statistics, decreased to 5.7% in April from 5.9% in March 2012 on an annual average basis, while the year-on-year inflation moved up to 6.1% in April from 5.5% in the previous month. Central Bank said it was noteworthy that inflation, on a year-on-year basis, remained at single digit levels for the 39th consecutive month.

Meanwhile, core inflation, on an annual average basis, continued to decrease to 6.3% in April, from 6.5% in the previous month, for the seventh successive month. However, core inflation increased to 5.2% in April from 4.9% in March 2012, on a year-on-year basis.

The CCPI increased by 0.6% in April 2012 over the previous month, with the Index increasing in absolute terms to 159.8 from 158.8 in March 2012.

The contribution to the monthly increase in the Index came mainly from price increases in the food category, which rose by 1.0%. Within the Food sub-category, the prices of most varieties of vegetables and fresh fish, potato, big onion, eggs, dried fish, dhal and sugar increased due to seasonal demand.

Further, prices increased in the sub categories of Furnishing, household equipment and routine household maintenance (by 1.5%); recreation and culture (by 1.0%); transport (by 0.5%); miscellaneous goods and services (by 0.4%); clothing and footwear (by 0.1%); and housing, water, electricity, gas and other fuels (by 0.1%); compared to the previous month. Meanwhile, the prices in the sub category of health, communication and education remained unchanged during the month.