DCS report reveals Sri Lanka's March inflation ease to 2.5%

The report indicates that in March 2024, contributions to the inflation rate from the food group and non-food group stood at 2.1 per cent and 0.4 per cent, respectively.

On a monthly basis, the year-on-year inflation of the food group remained steady at 5.0 per cent in March 2024, consistent with the February 2024 figures.

Meanwhile, the year-on-year inflation of the non-food group declined to 0.7 per cent in March 2024 from 5.1 per cent in February 2024.

The reduction in index values of non-food groups in March 2024, compared to the previous month, was primarily attributed to price decreases in categories such as ‘housing, water, electricity, gas, and other fuels’ (including electricity bills) and ‘clothing and footwear’. However, there were reported price increases for items in the categories of ‘alcoholic beverages, tobacco and narcotics’ and ‘restaurants and hotels’.

Core inflation, which offers insights into underlying inflation by excluding volatile items such as food, energy, and transport groups, as measured by the year-on-year change based on NCPI for March 2024, rose to 3.4 per cent from the 2.7 per cent reported in February 2024.

The report underscored a notable decline in overall inflation, driven by both food and non-food categories, alongside specific observations regarding price movements within various groups.

Additionally, the uptick in core inflation suggests nuances in underlying inflationary pressures within the economy.

ALCHEMPro News Desk (DR)