Sri Lanka’s Inflation dropped to 59.2% in December 2022

The overall rate of inflation as measured by the National Consumer Price Index (NCPI) on Year-on-Year basis is 59.2% in December 2022 and inflation calculated for November 2022 was 65.0%, said the Department of Census and Statistics today (January 23).

Food inflation has also decreased to 59.3% in December 2022, compared to 69.8% in November 2022.

Issuing the NCPI, for the month of December 2022, the Actg. The Director General of Census and Statistics said that headline inflation as measured by the Year-on-Year change (The percentage change in the current month NCPI over the same month NCPI of last year) based on the NCPI has been compiled as 59.2%. The headline inflation reported for the month of November 2022 was 65.0%.

Contributions to the inflation rate of December 2022 from the food group and non-food group are 29.5% and 29.6% respectively. Whilst contributions of food and non-food groups to the inflation in December 2021 were 10.0% and 4.0% respectively, resulting in a headline inflation of 14.0%.

With respect to December 2021, the reported inflation for the month of December 2022 was mainly due to the higher price levels prevailing in both food and non-food groups, the department said.

Anyway, on a monthly basis, the Year-on-Year inflation of the food group decreased to 59.3% in December 2022 from 69.8% in November 2022 and the Year-on-Year inflation of the non-food group also decreased to 59.0% in December 2022 from 60.4% in November 2022.

Comparing the month-on-month changes, the NCPI for all items for the month of December 2022 was 256.3, unchanged compared to November 2022. The month-on-month change was contributed by a 0.20 percent decrease in expenditure value for food items and a 0.21 percent increase in expenditure value for non-food items, it said.

Price decreases of food items were mainly reported for Big onions, Dried fish, Sugar, Vegetables, Rice, Wheat flour, Bread, Lime, Mysore dhal, and Potatoes. However, increases in index values were reported for Coconuts, Milk powder, Fresh fruits, Tea dust/leaves, Coconut oil, Eggs, Red onions and Chicken.