Sri Lanka’s September consumer inflation dips to 0.8%

The overall rate of inflation as measured by National Consumer Price Index (NCPI) on a year-on-year basis has dropped to 0.8% in September 2023 from 2.1% in August 2023, according to the Department of Census and Statistics. 

Meanwhile food inflation has increased to -5.2% in September 2023 from -5.4% in August 2023. 

Issuing the NCPI, for the month of September 2023, 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 same month NCPI of last year) based on the NCPI has been compiled as 0.8%. 

The headline inflation reported for the month of August 2023 was 2.1%. 

Contributions to the inflation rate of September 2023 from the food group and non-food group are -2.4% and 3.2% respectively, the report said. 

On a monthly basis, the Year-on-Year inflation of the food group increased to -5.2% in September 2023 from -5.4% in August 2023 and the Year-on-Year inflation of the non-food group decreased to 5.9% in September 2023 from 9.0% in August 2023. 

Comparing the month-on-month changes, NCPI (Base 2021=100) in September 2023 has increased to 203.5 from 201.9 reported in August 2023. This shows an increase of 1.6 index points or 0.8 percent as compared to August 2023. 

The month-on-month change was contributed by increases in food items and non-food items of 0.41% and 0.36% respectively.

Meanwhile core inflation, which reflects the underlying inflation by excluding volatile items of food, energy and transport groups in the economy as measured by the Year-on-Year change based on NCPI (Base 2021=100) for the month of September 2023 was decreased to 1.7% from 4.1% reported in the month of August 2023.