Deflationary pace slows in March

CLEAR SIGN OF DISSIPATING DEFLATIONARY CONDITIONS

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▸ PRICES DECLINE 2.6 PERCENT IN MARCH, SLOWER THAN 4.2 PERCENT DROP IN FEBRUARY

▸ FOOD PRICES RISE ANNUALLY, BUT FALL MONTHLY IN MARCH

▸ NON-FOOD PRICES DECLINE ANNUALLY, BUT THE MONTHLY PRICES MARGINALLY UP

The consumer prices as measured by the Colombo Consumer Price Index (CCPI), the mostly watched price gauge for March fell by 2.6 percent from a year ago, slower than the 4.2 percent fall in February.

This is a clear sign of dissipating deflationary impulses as the impacts of the previous cuts to energy and power are fading, while the lower base effects are starting to emerge.