Inflation drops to 6.3% in June

Saturday, 22 July 2017 00:35 - - {{hitsCtrl.values.hits}}

The year-on-year inflation based on the National Consumer Price Index (NCPI) for the month of June 2017 has decreased to 6.3% from 7.1% in May 2017. Contributions to inflation from the food group and non-food group in June 2017 are 3.9% and 2.4% respectively, whereas contributions of these two groups to inflation in June 2016 were 3.4% and 3.1% respectively.

Census and Statistics Department Director General Dr. Amara Satharasinghe said that when compared to month-on-month changes, the NCPI in June 2017 had increased to 123.4 from the 121.8 reported for May 2017. This shows an increase of 1.6 index points or 1.3 percentage points in June 2017, compared to the previous month May 2017. This month-on-month change was due to increases in expenditure value of food items by 1.30% and non-food items by 0.03% respectively.

The increase in expenditure value of food items was due to the price increases in rice, vegetables, fresh fish, dried fish, chicken, red onions, green chilies, tea, limes and garlic. However, decreases in expenditure value in index were reported for coconuts, coconut oil, eggs, big onions, banana, papaw, and tamarind.

The increase in expenditure value of non food items in June 2017 compared to the previous month was due to the expenditure value increases in groups of ‘Furnishing, Household equipment and Routine household maintenance’, ‘Miscellaneous Goods and Services’, ‘Alcoholic beverages, Tobacco and Narcotics’ and ‘Clothing and Footwear’. However, decrease in expenditure value was reported for the non-food commodity group of ‘Health’ compared to the previous month of May 2017.

The expenditure value of ‘Housing, Water, Electricity, Gas and Other fuels’, ‘Transport’, ‘Communication’, ‘Recreation & Culture’, ‘Education’ and ‘Restaurant and Hotels’ groups remained unchanged during the month.