Inflation Drops

The annual average inflation rate, as measured by the Colombo Consumer's Price Index (CCPI) (2002=100), computed by the Department of Census and Statistics, decelerated further to 4.1 per cent in November 2009 from 5.2 percent in October 2009, for the thirteenth consecutive month since November 2008.

However, on a point-to-point basis inflation increased to 2.8 per cent as anticipated, reflecting mainly the lower base in the corresponding month of 2008. Meanwhile, the core inflation, which measures the price movement of non-food and non-energy items of the CCPI basket, stabilized at the previous month's level of 5.1 percent on a point-to-point basis, while continuing its decreasing trend on an annual average basis for the sixth successive month.