Sri Lanka inflation declines in November 2014: Amid rise in food prices

[First Guy]

Nov 29, 2014 (LBO) – Sri Lanka’s inflation, continued its decelerating trend observed since June 2013 and reached 1.5 percent in November 2014 compared to 1.6 percent in October on an annual average basis which is lowest since November 2009, the Central bank of Sri Lanka said in a media release.

The data is based on the change in the Colombo Consumers’ Price Index (CCPI) (2006/07=100), which is computed by the Department of Census and Statistics.
The year-on-year inflation also decreased to 3.5 percent in November 2014 from 3.6 percent in the previous month, as a result of downgraded revision of administered prices in the non-food category, the bank said.

Prices of items in the Nonfood category decreased on average, supported by the declines in prices in the Housing, Water, Electricity, Gas and other Fuels sub group.

Downward revision of LP Gas prices with effect from October 10, 2014 contributed significantly to this decrease, the bank said.

Nevertheless, prices in Clothing and Footwear; Furnishing, Household Equipment and Routine Household Maintenance; and Health sub groups recorded increases, while Transport; Communication; Recreation and Culture; Education; and Miscellaneous Goods and Services sub groups remained unchanged during the month.
The monthly percentage change in CCPI recorded a marginal increase of 0.1 percent in November 2014, mainly due to price increases in the Food category caused by seasonal factors and adverse weather conditions.

The bank said, prices of almost all varieties of vegetables, green chilies, coconuts, potatoes and red onions increased, within the food category.

However prices of many varieties of fruits and fresh fish were decreased.

Core inflation, which indicates the underlying inflation in the economy, remained unchanged in November 2014 at 3.6 percent on a year on year basis as recorded in the previous month.

Accordingly, core inflation, on a YoY and annual average basis, was increased to 3.4 per cent during November 2014, compared to 3.3 percent recorded in October 2014.

http://www.lankabusinessonline.com/news/sri-lanka-inflation-declines-in-november-2014:-amid-rise-in-food-prices/1625234805

[First Guy]

Reuters: Sri Lanka’s annual inflation fell to its lowest in more than five years in November, as the rate slowed to 1.5% from 1.6% in October, the Department of Census and Statistics said on Friday.

The annual average inflation for the latest 12 months fell to a 56-month low of 3.5% in November from 3.8% a month earlier. It hit a record high of 8.8% in March 2013.

http://www.ft.lk/2014/11/29/november-inflation-slows-to-over-5-year-low/

[sereneTop contributor]

Thanks FG for sharing.
Are these figures reflect the real situation.