Inflation slows to 8.9% in October

Thursday, 1 November 2012 01:09 - - {{hitsCtrl.values.hits}}

Inflation, as measured by the Colombo Consumers’ Price Index (CCPI) (2006/07=100) computed by the Department of Census and Statistics, declined to 8.9% in October 2012 on a year-on-year (YoY) basis from 9.1% in the previous month due to lower food prices.

However, the inflation rate on an annual average basis increased to 6.8% in October 2012 from 6.5% in September 2012, the Central Bank said yesterday.

It said core inflation increased both on a YoY and annual average basis to 6.8% and 5.4%, respectively, in October 2012 from 6.2% and 5.3%, respectively, in September 2012.

The CCPI declined by 0.3% in October 2012 over the previous month, with the Index decreasing in absolute terms to 165.0 from 165.5 in September 2012.

The contribution to the monthly decline in the Index came mainly from price decreases in the Food category (by 1.3%). The prices of many varieties of vegetables, fish and sea food, big onions, red onions, potatoes, eggs and some varieties of fruits decreased during the month. However, an increase in the price of infant milk powder, sugar, coconut and coconut oil was reported.

Within the Non-Food category, prices increased in the sub-categories of Clothing and Footwear (by 0.3%); Housing, Water, Electricity, Gas and Other Fuels (by 1.0%); Furnishing, Household Equipment and Routine Household Maintenance (by 0.5%); Transport (by 0.2%); Recreation and Culture (by 1.1%); Education (by 0.5%); and Miscellaneous Goods and Services (by 0.4%).

Meanwhile, the prices in the sub-categories of Health and Communication were unchanged during the month.