Thursday, September 3, 2009

Inflation down to 0.9 per cent in August

The rate of inflation, as measured by the point-to-point change in the Colombo Consumers’ Price Index (CCPI), decreased to 0.9 per cent in August, from 1.1 per cent in July. The annual average inflation rate also continued on its declining path which had commenced in November, 2008 and recorded a single digit level of 8.5 per cent, compared to 10.4 per cent in July 2009. It is noteworthy that this is the lowest annual average inflation rate recorded since 2006, states the Central Bank of Sri Lanka.
The CCPI decreased marginally by 0.3 per cent over the previous month, with the Index moving downward to 208.1 from 208.7 in July, 2009. The contribution to the monthly decrease in the Index arose mainly from the Food and Non alcoholic beverages sub category. All the other sub categories recorded monthly increases, especially Education, Transport, Clothing and footwear, and Housing, water, electricity, gas and other fuels.

The Core inflation, on a point-to-point basis, increased to 6.4 per cent in August, as compared to 6.0 per cent in July, 2009, while the annual average core inflation declined further to 13.2 per cent in August, 2009 from 14.2 per cent in the previous month.
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