Consumer inflation hits record 73.7% in September

NCPI based headline inflation (Y-o-Y) increased to 73.7 per cent in September 2022 from 70.2 per cent in August 2022 due to increases of prices of items in both Food and Non-food categories. Meanwhile, Food inflation (Y-o-Y) and Non-food inflation (Y-o-Y) recorded at 85.8 per cent and 62.8 per cent, respectively, in September 2022. Furthermore, the NCPI measured on an annual average basis, increased to 36.9 per cent in Septmeber 2022 from 31.3 per cent in August 2022 .Indicating a marginal increase in Services activities and a decrease in manufacturing activities, on a month-on-month basis, Purchasing Managers’ Indices for September 2022 recorded 42.6 and 51.2 index values, respectively.

During the period under review (15.10.2022 to 21.10.2022) crude oil prices showed a mixed performance. At the beginning of the period, prices declined due to uncertainties around a possible economic recession, higher US supply, and lower Chinese fuel demand. However, prices increased slightly towards the end of the week with China considering to shorten COVID-19 quarantine measures to visitors. Overall, during the period under review, Brent price remained broadly unchanged, while WTI price decreased by US dollars 1.68 per barrel.

Weekly AWPR for the week ending 21st October 2022 increased by 78 bps to 29.51 per cent compared to the previous week.The reserve money decreased compared to the previous week mainly due to decrease in the currency in circulation and decrease in the deposits held by the commercial banks with the Central Bank.

The total outstanding market liquidity was a deficit of Rs. 501.173 bn by end of this week, compared to a deficit of Rs. 515.506 bn by the end of last week.By 21st October 2022, the All Share Price Index (ASPI) decreased by 4.49 per cent to 8,685.52 points and the S&P SL 20 Index decreased by 6.64 per cent to 2,597.87 points, compared to the index values of last week.Outstanding central government debt increased to Rs. 24,264.4 bn by end June 2022 from Rs. 17,589.4 bn as at end 2021. By end June 2022, total outstanding domestic debt amounted to Rs. 12,738.5 bn while the rupee value of total outstanding foreign debt amounted to Rs.11,525.9 bn.

CBSL