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FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » ‘Inflation declines marginally’

‘Inflation declines marginally’

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1‘Inflation declines marginally’ Empty ‘Inflation declines marginally’ Fri Jul 03, 2015 4:18 pm

Melissa Pereira


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Inflation, as measured by the change in the Colombo Consumers’ Price Index (CCPI) (2006/07=100), which is compiled by the Department of Census and Statistics, declined marginally to 0.1 per cent, on an year-on-year basis in June 2015, from 0.2 per cent recorded in May 2015. Annual average inflation declined from 1.9 per cent in May 2015 to 1.7 per cent in June 2015. However, CCPI increased by 1.0 per cent from May to June 2015.

The monthly increase in CCPI was mainly caused by the increase in food prices. Prices of some varieties of vegetables, fresh fish, green chilies, red onions, limes, dhal, potatoes and sprats increased during June 2015. However, prices of many varieties of fruits, coconuts, coconut oil, big onions and green gram decreased during the month.

Within the Non-food category, prices in Clothing and Footwear; Furnishing, Household Equipment and Routine Household Maintenance; and Recreation and Culture; sub categories increased, while all other sub categories, namely, Housing, Water, Electricity, Gas and other Fuels; Health; Transport; Education; Communication and Miscellaneous Goods and Services remained unchanged during the month.

Core inflation, which reflects the underlying inflation in the economy, increased to 2.8 per cent in June 2015, from 2.6 per cent in May 2015 on an year-on-year basis. Annual average core inflation declined marginally from 2.9 per cent in May 2015 to 2.8 per cent in June 2015.
Courtesy: The Island 2 July 2015

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