Central Bank of Sri Lanka announced that Inflation in the month of July has decreased to 4.3 percent. Inflation, as measured by the Colombo Consumers’ Price Index (CCPI) (2002=100), computed by the Department of Census and Statistics, decreased to 4.3 per cent in July from 4.8 per cent in June 2010 on the point-to-point basis. This was the fifth consecutive month in which the Index registered a decline on the point-to- point basis.
In July, 2010 the CCPI decreased marginally by 0.04 per cent over the previous month, with the Index decreasing in absolute terms from 217.7 to 217.6. However, the annual average inflation increased marginally to 4.2 per cent in July from 3.9 per cent in June 2010.
The contribution to the monthly decrease in the Index originated mainly from price decreases in the sub categories of Food and non-alcoholic beverages (-0.2 per cent) and Housing, water, electricity, gas and other fuels (-0.3 per cent). Prices of Shell and Laugf gas were reduced by Rs 117 and Rs 85 with effect from July 01.
Decrease in prices of some varieties of vegetables, fish, rice and gas compared to the previous month contributed towards the downward movement in the above sub indices. Meanwhile, price increases were experienced in the sub categories of; Miscellaneous goods and services (1.3 per cent); Clothing and footwear (0.7 per cent); Recreation and culture (0.7); Furnishing, household equipment and routine household maintenance (0.5 per cent); Health (0.5 per cent); Education (0.3 per cent) and Transport (0.2 per cent); while the prices in the Communication sub category remained unchanged during the month.
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