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Year-on-year inflation reaches 8.8%

Issuing the National Consumer Price Index (NCPI), for the month of October 2017, Dr. Amara Satharasinghe, Director General of Census and Statistics says the Year on Year inflation, based on NCPI, has been compiled as 8.8%. The inflation reported for the month of September 2017 was 8.6%. For the month of October 2017, the reported increase in inflation is mainly because of the comparatively lower price levels prevailed in October 2016 particularly prices of coconuts, rice and vegetables. Contributions to the inflation from food group and non-food group in October 2017 are 6.4% and 2.4% respectively, whilst contributions of these two groups to the inflation in October 2016 were 2.3% and 2.8% respectively reflecting prevailed comparatively lower food prices in October 2016.

 

However, when compared to month on month changes, NCPI in October 2017 has increased to 124.8 from 123.3 reported in September 2017. This shows anincrease of 1.5 index points or 1.2percentage points in October 2017 as compared to September 2017. This month on month change was due to the increases of expenditure value of food items by 1.12% and non-food items by 0.08% respectively.

 

The increase in expenditure value of food itemswas due to the price increases in coconuts, vegetables,rice, green chilies, banana, red onions, limes and tea dust. However, decreases in expenditure value in index were reported forfresh fish, eggs, potatoes, mangoes, dried fishandchicken.

 

The increase in expenditure value of non food items in October 2017 compared to the previous month was due to the expenditure value increases in groups of ‘Restaurant and Hotels’,‘Housing, Water, Electricity, Gas and Other fuels’, ‘Alcoholic beverages, Tobacco and Narcotics’ and ‘Miscellaneous Goods and Services’. Further, the groups of ‘Clothing and Footwear’,and ‘Furnishing, Household equipment and Routine household maintenance’recorded very slight expenditure value increases compared to the preceding month.The expenditure value of ‘Health’, ‘Transport’,‘Communication’, ‘Education’ and ‘Recreation and Culture’ groups remained unchanged during the month.

 

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