Sri Lanka’s inflation in the month of February 2016 has increased to 1.7 per cent from -0.7 per cent in January 2016, on year-on-year basis, official data showed. Inflation is measured by the change in the National Consumer Price Index (NCPI) and compiled by the Department of Census and Statistics.
The Central Bank said the main contributor towards the increase in year-on-year inflation was the Non-food category, with substantial increases observed in Alcoholic Beverages and Tobacco; Clothing and Footwear; Furnishing, Household Equipment and Routine Household Maintenance; Heath; Transport and Miscellaneous Goods and Services sub categories, which surpassed the overall price decline observed in the food category in the NCPI.
Meanwhile, the change in the NCPI measured on an annual average basis decreased to 2.6 per cent in February 2016 from 2.9 per cent recorded in January 2016. When the monthly change in the NCPI is considered, the NCPI decreased by 1.1 per cent from January 2016 to February 2016. This monthly decline was mainly due to the decrease in prices of the items in the Food and Non Alcoholic Beverages category. Prices of vegetables, rice, green chilies, big onions, red onions, potatoes and limes decreased during the month. Prices in Alcoholic Beverages and Tobacco; Housing, Water, Electricity, Gas, and Other Fuels; Furnishing, Household Equipment and Routine Household Maintenance; Health; and Miscellaneous Goods and Services sub-categories increased during February 2016.
On the other hand, prices of Clothing and Footwear and Transport sub-categories decreased during February 2016. Prices in Communication; Recreation and Culture; Education and Restaurants and Hotels sub-categories remained unchanged during the month.