Inflation drops in June - CB

Inflation, as measured by the Colombo Consumers’ Price Index (CCPI) (2002=100), computed by the Department of Census and Statistics, decreased to 4.8 per cent in June from  5.3  per cent in May 2010 on the point-to-point basis, the Central Bank said in a statement.

This was the fourth consecutive month in which the Index registered a decline. However, the annual average inflation increased marginally to 3.9 per cent in June from 3.6 per cent in May 2010.

The CCPI increased by 0.8 per cent in June, 2010 over the previous month, with the Index increasing in absolute terms from 215.9 to 217.7. The contribution to the monthly increase in the Index originated mainly from price increases in the sub category of Food and non-alcoholic beverages (1.2 per cent). Increase in prices of some varieties of vegetables and fish due to the lower supply resulting from bad weather conditions and seasonal factors was the main contributory factor for the upward movement in the sub index. Meanwhile, price increases were experienced in the sub categories of Housing, water, electricity, gas and other fuels (0.9 per cent); Miscellaneous goods and services (1.2 per cent); Transport (0.1 per cent); Clothing and footwear (0.5 per cent); Furnishing, household equipment and routine household maintenance (0.03 per cent); while the prices in the Communication; Recreation and culture; Health and Education sub categories remained unchanged during the month.