Inflation unchanged at 6.3% in July

National Consumer Price Index (NCPI) in July has remained unchanged at 6.3% from an year earlier and lower in comparison to June, Census and Statistics Director General Dr. Amara Satharasinghe revealed yesterday. He said contributions to the inflation from food group and non-food group in July 2017 are 3.7% and 2.6% respectively, whereas contributions of these two groups to the inflation in June 2017 were 3.9% and 2.4% respectively.

However, when compared to month on month changes, NCPI in July 2017 has decreased to 122.4 from 123.4 reported for June 2017. This shows a decrease of 1.0 index points or 0.8percentage points in July 2017 compared to the previous month. This month on month change was due to the decrease of expenditure value of food items by 0.90% and increase of expenditure value of non-food items by 0.06%.

The decrease in expenditure value of food items was due to the price decreases in vegetables, fresh fish,coconuts,Mysore dhal, red onions, big onions, green chilies, coconut oiland garlic.  However, increases in expenditure value in index were reported for rice, sprats(dry),eggs, banana and tea.

The increase in expenditure value of non food items in July 2017 compared to the previous month was due to the expenditure value increases in groups of ‘Transport’, ‘Miscellaneous Goods and Services’,‘Alcoholic beverages, Tobacco and Narcotics’, ‘Furnishing, Household equipment and Routine household maintenance’and ‘Clothing and Footwear’. Further, the group of ‘Restaurant and Hotels’ recorded very slight expenditure value increase compared to the preceding month.

However, decrease in expenditure value was reported for non food commodity group of ‘Health’ compared to the previous month of June. The expenditure value of ‘Housing, Water, Electricity, Gas and Other fuels’, ‘Communication’, ‘Recreation and Culture’ and ‘Education’ groups remained unchanged during the month.