Jan. inflation rises to 3.7%

Saturday, 2 February 2019 00:00 - - {{hitsCtrl.values.hits}}

Price increases in non-food items pushes up inflation by 0.91% according to Colombo-based calculations

Inflation rose to 3.7% in January, up 0.91% from December when inflation was 2.8%, the Census and Statistics Department said yesterday, with prices being pushed up largely by non-food items.

The CCPI for all items for the month of January 2019 was 127.4 and it records an increase of 1.1 index points that is 0.91 percentage points compared to the month of December 2018 for which the index was 126.3. This represents an increase of expenditure value by Rs.690.47 in the ‘Market Basket’.

An increase in the index point by 0.91% was due to the expenditure value decrease of Food items by 0.75% and increase of Non Food items by 1.66%. Decreases in value change were reported for vegetables (0.69%), coconut (0.17%), limes (0.06%), big onions (0.05%), potatoes (0.05%), red onion (0.01%), coconut oil (0.01%) and mangoes (0.01%).

Meanwhile, increases in value change were reported for sea fish (0.17%), rice (0.03%), eggs (0.03%), papaw (0.02%), green chilies (0.02%), biscuits (0.01%), dried fish (0.01%), banana (0.01%) and tea dust/leaves (0.01%).

Among Non‐Food groups, increases in value change were reported for ‘housing, water, electricity, gas and other fuels’ (0.89%), ‘education’ (0.86%), ‘furnishing household equipment and routine household maintenance’ (0.11%) and ‘clothing and footwear’ (0.07%).

Decreases in value change were reported for the group ‘transport’ (0.28%). ‘Alcoholic beverages, tobacco and narcotics’ group showed an insignificant value change while other groups remain unchanged during the period.

The CCPI is compiled to indicate average changes in the prices of goods and services purchased by households in urban areas of Colombo District. Prices for items in the Colombo Consumer Price Index are collected from 14 selected centres located in Colombo, namely Pettah, Maradana, Wellawatta, Dematagoda, Grandpass, Borella, Kirulapone, Dehiwala, Mt. Lavinia, Kotte, Nugegoda, Kolonnawa, Narahenpita and Ratmalana dedicated economic centres.

Prices are collected weekly from the outlets located within each of the above market areas including Lak Sathosa and a supermarket. The consumer basket includes 392 items, which represent the typical urban household consumption expenditure. The CPI weights are derived from the Household Income and Expenditure Survey (HIES) 2012/13.

Department of Census and Statistics (DCS) is the authorised agency to compile Colombo Consumer Price Index (CCPI). The base year used for compilation of CCPI from June 2011 to December 2016 was the year 2006/07.