Consumer prices in the Colombo district witnessed a notable acceleration, reaching 3.4 percent in November on a year-on-year basis, up from 1.5 percent in October.
This surge comes as the favorable base effects observed through September dissipated, signaling that citizens are grappling with higher costs for goods and services compared to both a year ago and a month ago.
On a monthly scale, inflation rose by 1.0 percent in November from the previous month, marking a shift in the trend. In September, inflation had experienced a decline, but the higher base effects waned, leading to a reversal in October.
Contrary to common misconceptions, declining inflation does not equate to falling prices. Instead, inflation measures the pace of price increases from a year ago. While the rate of increase in consumer prices slowed through September, it picked up again in October due to the absence of higher base effects from the previous year, reflecting the true price increases. Monthly prices also rose, indicating that people paid more for goods and services compared to the previous month.
In the food sector, inflation rose by 0.3 percent in November from a month ago, reversing a 2.0 percent decline in the previous month. Despite this, annual food prices are still in deflation, having declined by 3.6 percent in November from a year ago, slowing from a 5.2 percent decline.
Food prices have been in deflation for the fifth consecutive month, meaning they have declined from the levels seen a year ago
