Consumer prices rise in November

OVERALL price levels rose in November compared to the previous month, following the historical seasonal behaviour. Seasonal slump in harvest resulted in higher food prices leading to the resultant increase.

A further fall in point to point increases was observed with the subsequent drop in annual average inflation for the third consecutive month, which stood at 12.1 per cent and 10.5 per cent as per the CCPI and CDCPI for November 2005, the Central Bank said.

The CCPI, the official measure of price changes within the Colombo Municipality for the lowest 40 per cent of income groups published by the Government Department of Census and Statistics, registered 4172.9 in November 2005, indicating an increase of 2.2 per cent over the previous month.

The increase in the index in November 2005 over November 2004 (the point to point change) was 9.1 per cent compared to 10.4 per cent in October 2005 and 13.1 per cent in November 2004.

Accordingly, the annual average increase of the index dropped to 12.1 per cent in November from 12.5 per cent in October 2005.

The CDCPI, computed by the Central Bank of Sri Lanka, for the lowest 40 per cent of income earning households covering the Colombo District, increased by 1.7 per cent in November 2005 over October 2005.

The point to point increase was 5.7 per cent compared to 6.8 per cent in October 2005 and 10.6 per cent in November 2004.

Accordingly, the annual average increase of the index dropped to 10.5 per cent in November 2005 from 11.0 per cent in October 2005. The food category with its higher representation in the index was the major contributor to the monthly increase of the CDCPI.

Most varieties of rice, coconut, certain condiments including chillies, lime and onions, most varieties of fish and vegetables, potatoes, beef and lentils registered significant price increases.

Meanwhile, rice (samba), eggs, most varieties of fruits, a few varieties of fish and vegetables, certain dried fish varieties and tea dust experienced price decreases during the month.

The increasing trend of the annual average change in the CDCPI, which commenced since the second half of 2004 reversed in the month of September 2005 and continued into November as well.

However, the twelve-month moving average of the Food sub-index with a representation of around 60 per cent in the overall index recorded an increase for this month, the Central Bank said.