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Inflation Rate drops to 2.5% in March 2024

April 23, Colombo (LNW): The Department of Census and Statistics (DCS) in its latest report has revealed a decrease in the overall rate of inflation, as measured by the National Consumer Price Index (NCPI) on a Year-on-Year basis, to 2.5 per cent in March 2024,

This marks a notable decline from the 5.1 per cent recorded in February 2024.

While the contributions to the inflation rate in March 2024 from the food group and non-food group stand at 2.1 per cent and 0.4 per cent respectively, there are notable fluctuations in specific categories within these groups.

The Y-o-Y inflation of the food group remained steady at 5.0 per cent in March 2024, consistent with February 2024, with the Y-o-Y inflation of the non-food group decreasing to 0.7 per cent from 5.1 per cent in the same period, according to report.

This decline in the non-food group index values in March 2024, compared to the previous month, can be attributed primarily to price decreases in categories such as ‘Housing, Water, Electricity, Gas and Other fuels’ (including electricity bills) and ‘Clothing and Footwear’.

However, price increases were reported in categories such as ‘Alcoholic Beverages, Tobacco and Narcotics’ and ‘Restaurants and Hotels’.

Moreover, core inflation, which excludes volatile items like food, energy, and transport, has seen an increase to 3.4 per cent in March 2024 from 2.7 per cent reported in February 2024, indicating underlying inflationary pressures within the economy.

While these figures may suggest some degree of stability, it would be imperative to note that challenges persist, particularly in addressing the cost of living for citizens.

The government must continue to implement robust economic policies aimed at mitigating inflationary pressures and ensuring sustainable economic growth, according to analysts.

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