Inflation marginally up in February

Sri Lanka’s inflation measured in a new National Consumer Price Index (NCPI) was up 1.7% in February from a year earlier, compared with a 0.7% fall in January, the Department of Census and Statistics said yesterday.

It said the NCPI has been compiled as 110.8 for February 2016. This shows a decrease of 1.2 index points and also a percentage of 1.1 compared to the previous month’s (January) index of 112.0. This change is due to the value change decrease of food items by 1.22% and value change increase of non-food items by 0.11%. 

For February 2016, the value change decrease of food items was mainly due to the price decreases in vegetables, rice, green chilies, big onions, red onions, potatoes, limes, coconut and coconut oil compared to the previous month (January). However, increases in value change were recorded for dried fish, fresh fish, papaw, sugar, mangoes and garlic due to price increases of these items compared to the previous month (January).

The value change of non food commodity group has increased by 0.11% in February 2016 compared to January 2016. This was mainly due to the value change increases in non food commodity groups of ‘housing, water, electricity, gas and other fuels’ and ‘miscellaneous goods and services’. Also the slight increases in value change were reported for groups of ‘alcoholic beverages tobacco & narcotics’, ‘furnishing, household equipment & routine household maintenance’ and ‘health’. Anyway, the slight decreases in value change were observed for groups of ‘clothing and footwear’ and ‘transport’.

In a communiqué issued on NCPI, Census and Statistics Department Director General Dr. Amara Satharasinghe said that Year on Year inflation based on NCPI for the month of February 2016 was calculated as 1.7% and inflation calculated for January 2016 was -0.7%. This increase of inflation in February 2016 was mainly due to elimination of effect of price reduction of few essential food items, LP gas, kerosene oil, petrol, diesel and bus fare in interim Budget proposal implemented by the Government in February 2015.

The latest Consumer Price Index (CPI) released by the DCS is, National Consumer Price Index (NCPI). DCS commenced releasing NCPI (Base 2013=100) from October 2015 with a time lag of 21 days.