Sri Lanka’s core inflation has risen by 4.4% Year-on-Year in October 2015, witnessing the highest rise since May 2013, data from the Central Bank of Sri Lanka released today showed.
‘Core Inflation’ is a measure of inflation that excludes certain items that face volatile price movements such as food and energy prices. Core inflation eliminates products that can have temporary price shocks because these shocks can diverge from the overall trend of inflation and give a false measure of inflation.
Meanwhile, the Central Bank said headline inflation increased to 1.7 per cent in October 2015, compared to -0.3 per cent recorded in the previous month, on an year-on- year basis.
Sri Lanka’s inflation is measured by the change in the Colombo Consumers’ Price Index (CCPI) (2006/07=100) and compiled by the Department of Census and Statistics.
“This increase was mainly due to the removal of the high base effect of downward administrative price revisions effected since September 2014. The recent price increase in several key items in the food category also contributed to the increase in year-on-year inflation in October,” the Central Bank said adding that the Annual average inflation however remained unchanged at 0.7 per cent as recorded in September 2015 whilst the CCPI increased by 0.4 per cent from September to October 2015.
“This was mainly caused by the increase in prices of items in the Food category. Prices of rice, fresh fish, dried fish, Maldive fish, some varieties of fruits, most varieties of vegetables, potatoes, red onions, green chilies, dried chilies, lime and sugar increased during the month. However, prices of chicken, eggs, coconuts and papaw decreased during the month. Within the Non-food category, prices in Housing, Water, Electricity, Gas and other Fuels sub category increased. Prices in the Clothing and Footwear category declined during the month,” the Central Bank said.
All the other sub categories, namely, Furnishing, Household Equipment and Routine Household Maintenance; Health; Transport; Communication; Recreation and Culture; Education; and Miscellaneous Goods and Services remained unchanged during the month.