Food inflation 24.4%, non-food inflation 10.2% in January 2022

NCPI based headline inflation (Y-o-Y) increased to 16.8 per cent in January 2022 from 14.0 per cent in December 2021 due to increases of prices of items in both Food and Non-food categories, according to Weekly Economic Indicators announced by the Central Bank of Sri Lanka (CBSL).

Meanwhile, Food inflation (Y-o-Y) and Non-food inflation (Y-o-Y) recorded at 24.4 per cent and 10.2 per cent, respectively, in January 2022.

Furthermore, the NCPI measured on an annual

average basis, increased to 8.1 per cent in Janaury 2022 from 7.0 per cent in December 2021.

During the period under review (19.02.2022 to 25.02.2022), crude oil prices (Brent) increased above US dollars 100 per barrel, recording their highest levels since September 2014. Prices increased on escalating geopolitical tensions between Russia and Ukraine and investor concerns about its impact on crude oil supplies.

Weekly AWPR for the week ending 25th February 2022 decreased by 10 bps to 8.99 per cent compared to the previous week.

The reserve money increased compared to the previous week mainly due to the increase in currency in circulation and deposits held by the commercial banks with the Central Bank.

The total outstanding market liquidity was a deficit of Rs. 673.903 bn by end of this week, compared to a deficit of Rs. 693.539 bn by the end of last week.

By 25th February 2022, the All Share Price Index (ASPI) decreased by 8.46 per cent to 11,107.9 points and the S&P SL 20 Index decreased by 9.62 per cent to 3,742.33 points, compared to the index values of last week.

During the year up to 25th February 2022, the Sri Lankan rupee depreciated against the US dollar by 0.9 per cent. Given the cross currency exchange rate movements, the Sri Lankan rupee depreciated against the pound sterling by 0.2 per cent and the Japanese yen by 0.8 per cent while appreciating against the Euro by 0.04 per cent and the Indian rupee by 0.4 per cent during this period, CBSL said.