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Home Business News

CBSL: Inflation decreased in January 2021

by Editor
23 February, 2021
in Business News, Economy, News
1 min read
Inflation

Inflation

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Headline inflation as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100)1 decreased to 3.7 per cent in January 2021 from 4.6 per cent in December 2020. This was due to the statistical effect of the high base prevailed in January 2020. Meanwhile, Food inflation (Y-o-Y) decreased to 5.9 per cent in January 2021 from 7.5 per cent in December 2020. Further, Non-Food inflation (Y-o-Y) decreased to 1.8 per cent in January 2021 from 2.2 per cent in December 2020.

The change in the NCPI measured on an annual average basis decreased to 5.8 per cent in January 2021 from 6.2 per cent in December 2020.

Monthly change of NCPI recorded at 0.62 per cent in January 2021 due to price increases observed in items of both Food and Non-food categories. Moreover, monthly changes of Food and Non-food categories recorded at 0.48 per cent and 0.14 per cent, respectively in January 2021. Accordingly, within the Food category, increases were observed mainly in the prices of rice, coconut, green chilli and vegetables during January 2021. Moreover, prices of items in the Non-Food category recorded an increase during the month mainly due to price increases observed in Health (fees to private medical practices and payments to private hospital room charges) and Furnishing, Household Equipment and Routine Household Maintenance (wages of servants) sub-categories

Further, year-on-year core inflation decreased to 4.2 per cent in January 2021 from 4.7 per cent in December 2020, while annual average core inflation increased marginally to 4.2 per cent in January 2021 from 4.1 per cent in December 2020. – CBSL

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