Nationwide inflation rises to 70.2%

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Nationwide inflation in Sri Lanka accelerated to 70.2 per cent year-on-year during August this year from 66.7 per cent recorded in July, as both food and non-food inflation increased.

According to the Department of Census and Statistics, food inflation which was at 82.5 per cent in July accelerated to 84.6 per cent in August this year, while the non-food inflation which was at 52.4 per cent in July increased to 57.1 per cent in August.

The 12-month moving average inflation in August accelerated to 31.3 per cent from 25.9 per cent in July, as food inflation rose to to 41.2 per cent from 34.9 per cent a month earlier, while non-food inflation increased to 22.6 per cent from 18 per cent.

The National Consumer Price Index expanded to 250.4 index points in August from 244.4 index points in July, which represents an increase in expenditure value of Rs 1,922.68 in the ‘Market Basket’

On a year-on-year basis, the contribution of food commodities to inflation was 40.41 per cent in August 2022 compared to that of August 2021, while the contribution from non-food items was 29.79 per cent.

Monthly change of NCPI recorded at 2.45 per cent in August 2022, due to price increases observed in items of both Food and Non-Food categories, which were 0.91 per cent and 1.53 per cent, respectively.

Accordingly, within the Food category, increases were observed in prices of fresh fish, eggs, biscuits and fruits. However, prices of dhal, rice and sugar decreased during the month. Further, within the Non-Food category, increases were observed in prices of Housing, Water, Electricity, Gas and Other Fuels (Electricity, Materials for maintenance and Kerosene), Furnishing, Household Equipment and Routine Household Maintenance (Washing soap) and Miscellaneous Goods and Services sub-categories during the month. It is noteworthy that Transport (Petrol, Diesel and Bus fare) sub-category recorded a decline during the month.

The core inflation Y-o-Y, which reflects the underlying inflation in the economy increased to 60.5 per cent in August 2022 from 57.3 per cent in July 2022, while annual average core inflation increased to 26 per cent in August 2022 from 21.3 per cent in July 2022.

By Mario Andree