Inflation remained at 6% in July

The Central Bank said that inflation in the month of July was 6.0% and it was a slight increase compared to the previous month figure of 5.8%

The Bank said that the core inflation continued its decelerating trend for the tenth consecutive month and reached at 5.5% in July 2012, on an annual average basis, from 5.7% in June 2012, while increasing on a year on year basis to 6.0% in July 2012 from 5.8% in the previous month.

It said that the Colombo Consumer Price Index (CCPI)  increased by 0.9% in July 2012 over the previous month, with the Index increasing in absolute terms to 166.7 from 165.2 in June 2012. It said that the contribution to the monthly increase in the Index came mainly from price increases in the Food and Non-Alcoholic Beverages category (by 1.6%) followed by the Non-Food category (by 0.3%).

Elaborating on the price increases, the Bank said that the increase in the prices of rice, coconut, fresh fish, sugar, fruits, vegetables and prepared food contributed to the increase in the food category of CCPI. The upward revision in the prices of wheat flour, fuel and milk powder has had an impact on the prices of prepared foods with a time lag.

It said however, a decline in the prices of red onions, big onions and limes was also reported during the month. Within the Non-Food category, prices increased in the sub-categories of Health (by 1.9%); Clothing and Footwear (by 1.1%); Furnishing, Household Equipment and Routine Household Maintenance (by 1.1%); Miscellaneous Goods and Services (by 0.2%) and Transport (by 0.1%). However, prices in the sub-category of Housing, Water, Electricity, Gas and Other Fuels recorded a decline of 0.3% due to the reduction in prices of LP gas w.e.f. 14 July 2012. Meanwhile, the prices in the sub-categories of Communication; Recreation and Culture; and Education remained unchanged during the month.(niz)