Nationwide inflation slows to 6.7% in August
By Mario Andree
Nationwide inflation in Sri Lanka slowed down to 6.7 per cent year-onyear during August this year from 6.8 per cent recorded in July with nonfood inflation slowing to three per cent despite of a 10-basis point increase in food inflation. According to the Department of Census and Statistics, food inflation which was at 11 per cent in July increased to 11.1 per cent in August this year, while non-food inflation slowed to three per cent in August from 3.2 per cent in July.
However, the 12-month moving average inflation in August accelerated to 5.5 per cent after remaining unchanged at 5.4 per cent for three consecutive months up to July as a result of an increase in nonfood inflation. The 12-month moving average nonfood inflation accelerated to 2.2 per cent in August this year from two per cent in July, while food inflation slowed to 9.4 per cent from 9.6 per cent.
The National Consumer Price Index expanded to 147.1 index points in August from 146.6 index points in July, which represents an increase in expenditure value of Rs 168.11 in the ‘Market Basket’. On a year-on-year basis, the contribution of food commodities to inflation was 5.07 per cent in August 2020 compared to that of August 2019, while the contribution from non-food items was 1.65 per cent. Non-food inflation contribution was mainly due to price increases in groups of items and services – ‘Transport’ (0.76%), ‘Health’ (0.29%), ‘Furnishing Household equipment and Routine household maintenance' (0.17%), ‘Restaurant and Hotels’ (0.14%), ‘Clothing and Footwear’ (0.12%), ‘Miscellaneous goods and services’ (0.09%), ‘Housing, Water, Electricity, Gas and Other fuels’ (0.07%) and ‘Recreation and Culture’ (0.02%).
Further, a very slight price increase was reported in group of ‘Education’. However, price decrease in group of items was reported in ‘Alcoholic beverages, Tobacco and Narcotics’ (0.02%). Meanwhile, the group of ‘Communication’ remained unchanged during the period.