Annual average inflation remains unchanged

Inflation, as measured by the Colombo Consumers' Price Index (CCPI) (2006/07=100) and computed by the Department of Census and Statistics increased to 7.3 percent on a year-on-year (YoY) basis in May 2013 from 6.4 percent in the previous month.

The inflation rate on an annual average basis remained unchanged at 8.8 percent in May 2013 as recorded in the previous two months.

Core inflation on a YoY basis decreased to 5.7 percent in May 2013 from 6.1 percent in the previous month while it increased marginally on an annual average basis to 6.6 percent in May 2013 from 6.5 percent in April 2013.

The CCPI increased by 2.3 percent in May 2013 over the previous month, with the Index increasing in absolute terms to 173.9 from 170.0 in April 2013. The contribution to the monthly increase in the Index came mainly from price increases in the Non-Food category by 3.7 percent.

Within the Non-Food category, prices increased in the sub-categories of Housing, Water, Electricity, Gas and Other Fuels (by 9.9 percent); Recreation and Culture (by 2.7 percent); Miscellaneous Goods and Services (by 0.4 per cent); Education (by 0.2 percent); Clothing and Footwear (by 0.1 per cent); and Furnishing, Household Equipment and Routine Household Maintenance (by 0.1 percent).

The increase in the sub category of Housing, Water, Electricity, Gas and Other Fuels was due to the impact of the upward revision in the electricity charges with effect from April 20, 2013. Meanwhile, the prices in the sub-categories of Health; Transport; and Communication were unchanged during the month.