• December inflation hits 59% from previous 65%

Issuing the National Consumer Price Index (NCPI), for the month of December 2022, the Acting  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 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 that prevailed in both food and non-food groups. 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% decrease in expenditure value for food items and a 0.21% increase in expenditure value for non-food items.

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.

The increases in index values of non-food groups in December 2022 compared to the previous month was mainly due to the price increases in groups of items “Clothing and Footwear”, “Furnishing, Household equipment and Routine household maintenance” (Energy saving bulbs), “Transport” (Vehicle license fees), “Recreation and Culture” (Books), “Restaurants and Hotels”, and “Miscellaneous Goods and Services” (Toilet soap). 

However, price decreases in groups of items were reported for “Alcoholic Beverages, Tobacco and Narcotics” (Betel leaves and Arecanuts) and “Housing, Water, Electricity, Gas, and Other fuels” (Materials for the Maintenance). Further, a very slight price increase was reported in the group of “Health”. Meanwhile, the price indices of “Communication” and “Education” groups remained unchanged during the month.

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 for the month of December 2022 was decreased to 57.5% from 60.1% reported in November 2022.