Inflation declines in September led by low food prices: CB

Tuesday, 1 October 2013 00:52 - - {{hitsCtrl.values.hits}}

Inflation, as measured by the Colombo Consumers’ Price Index (CCPI) (2006/07=100) computed by the Department of Census and Statistics, decreased to 6.2% in September 2013 from 6.3% in the previous month, on a year-on-year (YoY) basis, mainly due to low food prices. The annual average inflation rate also decreased further to 7.8% in September 2013 from 8.0% in the previous month, for the fourth consecutive month.

Core inflation on both YoY and annual average basis decreased to 3.0% and 5.7%, respectively, in September 2013 from 3.1% and 5.9%, respectively, in August 2013. The CCPI decreased by 0.2% in September 2013 over the previous month, with the Index decreasing in absolute terms to 175.8 from 176.2 in August 2013. The contribution to the monthly decrease in the Index came mainly from price decreases (by 0.5%) in the Food and Non Alcoholic Beverages sub-category. Within the Food category, the prices of almost all varieties of rice, vegetables, fresh fish, dried fish, chicken, potatoes, green chillies and big onions decreased during the month.However, an increase in the prices of some varieties of fruits, coconuts, infant milk powder, eggs, red onions and limes was reported. Within the Non-Food category, decrease in prices was reported in the sub-category of Clothing and Footwear (by 0.3%). However, the prices in the sub-categories of Housing, Water, Electricity, Gas and Other Fuels (by 0.1%); Furnishing, Household Equipment and Routine Household Maintenance (by 0.1%); Health (by 0.2%); Transport (by 0.1%); Recreation and Culture (by 1.0%) and Miscellaneous Goods and Services (by 0.1%) increased. Meanwhile, the prices in the sub categories of Communication and Education remained unchanged during the month.