Inflation Rate in Sri Lanka Stabilizes in November; Food Inflation Remains Flat

The Department of Census and Statistics has reported a marginal increase in Sri Lanka’s National Consumer Price Index (NCPI) for November 2024. The NCPI rose to 202.4 from 202.1 in October, reflecting a 0.1% monthly inflation rate. However, year-on-year inflation continued to show a deflationary trend, registering at -1.7%.

Food Inflation Stays Steady
Year-on-year food inflation remained at 0.0% in November, indicating stable food prices over the past year. The monthly inflation in food contributed to a slight increase of 0.18%, driven by seasonal price hikes in vegetables and other essential commodities.

Non-Food Inflation Declines
Non-food categories witnessed a year-on-year deflation of -3.1%, attributed to price reductions in transport, housing, and utilities. Despite these decreases, specific non-food sectors like restaurants and hotels experienced minor price increases, adding 0.02% to the monthly NCPI change.

Contributing Factors to Inflation Trends
The stabilization in food prices was primarily due to improved supply conditions and government measures to manage staple food costs. However, seasonal demand for certain vegetables and spices contributed to localized price surges.

The overall decline in year-on-year inflation is indicative of easing economic pressures, particularly in non-food sectors. Yet, the general price level remains elevated compared to the index base of 2021, with an increase of over 102%.