Inflation drops this month

Inflation dropped from 1.6 percent in October to 1.5 percent this month according to a Central Bank release. Inflation slumped on a year-on-year (YoY) basis, which is the lowest since November 2009.

Inflation is measured by the change in the Colombo Consumers' Price Index (CCPI) (2006/07=100), which is computed by the Department of Census and Statistics.

Annual average inflation also dropped to 3.5 percent this month from 3.8 percent recorded in the previous month. Downward revision of administered prices in the Non Food category, contributed mainly to the drop in inflation, the Central Bank release stated.

The monthly percentage change in CCPI recorded a marginal increase of 0.1 percent this month mainly due to price increases in the Food category caused by seasonal factors and adverse weather conditions. In the Food category, prices of almost all varieties of vegetables, green chillies, coconuts, potatoes and red onions increased.