National inflation increases to 2.9% in March

Sri Lanka’s countrywide inflation measured by the year-on-year change in the National Consumer Price Index (NCPI) rose to 2.9 percent in March from 2.4 percent in February, mainly due to the low base that prevailed in the corresponding month of the previous year.

The year-on-year food and non-food inflation recorded -2.3 percent and 7.1 percent respectively.  

The change in the NCPI measured on an annual average basis remained unchanged at 1.7 percent in March 2019.  

When monthly change is considered, the NCPI declined by 0.2 percent in March 2019 with the decrease observed in the prices of the items in the food category, particularly that of rice, coconut and vegetables. 

However, within the non-food category, prices of the items in alcoholic beverages and tobacco; transport (petrol and diesel); clothing and footwear; and miscellaneous goods and services subcategories increased during the month.

The core inflation, which reflects the underlying inflation in the economy, increased to 5.8 percent in March compared to 5.5 percent in February on year-on-year basis, mainly due to the increase in prices of items in the non-food category, particularly in alcoholic beverages and tobacco sub-category. 

Annual average NCPI core inflation also increased to 3.3 percent in March from 3.0 percent in February 2019.