Inflation eases in January | Sunday Observer

Inflation eases in January

Sri Lanka’s inflation as measured by the National Consumer Price Index (NCPI) slowed to 5.4 per cent in January 2018 from 7.3 per cent in December 2017, on a year-on-year basis, official data showed. The slowdown was mainly owing to the high base that prevailed in January 2017 as well as the monthly decline in food prices in January 2018, the Central Bank said in a statement.

The change in the NCPI, compiled by the Department of Census and Statistics, measured on an annual average basis decreased to 7.6 per cent in January 2018 from 7.7 per cent in December 2017.In the monthly change, the NCPI decreased from 126.6 index points in December 2017 to 125.8 index points in January 2018.

The monthly decline was mainly due to the decline in prices of food, particularly that of vegetables, green chillies, coconuts, red onions and rice, although prices of fresh fish and some fruits increased.The statement said price increases were observed in restaurants and hotels; and transport subcategories in the Non-food category.

The NCPI Core inflation, which reflects the underlying inflation in the economy, continued to follow the declining trend since September 2017, te statement said. NCPI Core inflation decreased to 2.1 per cent in January 2018 from 2.7 per cent in December 2017 on a year-on-year basis.

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