June inflation at 2.5%

Tuesday, 24 July 2018 00:17 - - {{hitsCtrl.values.hits}}

June inflation reached 2.5%, slightly ahead of the 2.1% posted in May, the Census and Statistics Department said yesterday, pointing out that Sri Lanka’s inflation has remained below 3% over the last four months. Issuing the National Consumer Price Index (NCPI) for the month of June 2018, Census and Statistics Department Director General Dr. Amara Satharasinghe said that the Year on Year inflation based on NCPI has been compiled as 2.5%. The inflation reported for the month of May 2018 was 2.1%.

Contributions to the inflation in June 2018 from food group and non-food group are 0.26% and 2.26% respectively, whilst contributions of these two groups to the inflation in June 2017 were 3.9% and 2.4% respectively, resulting in headline inflation of 6.3%.

When compared to month on month changes, NCPI in June 2018 has increased to 126.5 from 124.3 reported in May 2018. This shows an increase of 2.2 index points that is 1.8% points in June 2018 as compared to May 2018. This month on month change was contributed by increases of expenditure value of food items by 1.55% and non-food items by 0.26% respectively.

The increases in expenditure value of food items were reported for vegetables, fresh fish, green chilies, potatoes, big onions, eggs, milk powder, dried fish, ginger and chicken. However, decreases in expenditure value of food items were reported for coconuts, banana, limes, rice, sugar, pineapple, gram and mangoes.

The increases in expenditure value of non-food items in June 2018, compared to the previous month, was due to the expenditure value increases in groups of ‘Transport’, ‘Restaurants & Hotels’, ‘Miscellaneous Goods and Services’ and ‘Furnishings, Household equipment and Routing household maintenance.’ In the ‘Transport’ group expenditure value increase was mainly due to increases in fuel prices (petrol & diesel) and bus fare.

However, decrease in expenditure value was reported for the group of ‘Alcoholic beverages, Tobacco and Narcotics’ compared to the preceding month. Meanwhile, the expenditure value of ‘Health’, ‘Recreation & Culture’ and ‘Education’ groups remained unchanged during the month.