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Sri Lanka’s inflation declines in June

Sri Lanka’s inflation as measured by the year on-year change in the National Consumer Price Index (NCPI) decreased to 2.1 per cent in June 2019 from 3.5 per cent in May 2019 due to high base prevailed in the corresponding month of the previous year, Central Bank announced.

In June 2019, both year-on-year Food and Non-food inflation decreased to -2.9 per cent and 6.2 per cent from -0.4 per cent and 6.7 per cent respectively.

The change in the NCPI measured on an annual average basis remained unchanged at 2.0 per cent in June 2019.

When monthly change is considered, the NCPI increased by 0.4 per cent in June 2019 with the increases observed in the prices of the items in both Food and Non-food categories.

Within the Food category, prices of fresh fish, big onions, green chillies, red onions and rice recorded increases. In addition, within the Non-Food category, prices of the items in Transport; and Restaurants and Hotels sub-categories increased during the month.

The core inflation, which reflects the underlying inflation in the economy, decreased to 6.1 per cent in June 2019 from 6.3 per cent in May 2019 on year-on-year basis. Annual average Core inflation increased to 4.4 per cent in June 2019 from 4.0 per cent in May 2019.

(LI)