Inflation 5.5 percent in March

The year-on-year inflation as measured by the Colombo Consumers' Price Index (CCPI) computed by the Department of Census and Statistics increased to 5.5 percent as anticipated mainly due to the increase of petroleum prices, electricity charges and bus fare.

However, the annual average inflation decreased marginally to 5.9 percent in March from 6.1 percent in February 2012, for the sixth successive month. Meanwhile, the annual average core inflation decelerated further for the sixth consecutive month to 6.5 percent in March 2012, while core inflation measured on a year on year basis increased marginally to 4.9 percent compared to 4.7 percent in the previous month.

The general price level as indicated by the monthly index recorded an increase of 2.2 percent in March 2012 over that of the previous month, with the index increasing in absolute terms to 158.8 from 155.4.

The contribution to the monthly increase in the index came from price increases in the non-food items (4.0 percent) mainly due to the revisionist petroleum prices, bus fare and adjustments in charges on electricity effected from mid-February. Prices in the food sub-category increased marginally by 0.1 percent. Within the food sub-category the prices of almost all major food items such as rice, vegetables green chillies, most varieties of fresh fish, big onions, red onions, potatoes, eggs and chicken declined due to improvements in supply while those of fruits, sugar and dhal increased due to seasonal and other factors.Prices in the sub-category of housing, water, electricity, gas and other fuels increased by 4.3 percent due to the upward revision in the price of kerosene and fuel adjustment charges on electricity while prices in the transport sub-category increased by 9.6 percent due to the price increase in petrol, diesel and bus fares.

Price increases were also registered in the sub-categories of clothing and footwear (1.3 percent) furnishing, household equipment and routine household maintenance (0.1 percent and miscellaneous goods and services (0.1 percent). However, health, communication, recreation, culture and education, sub-sectors remained unchanged during the month.