The annual inflation rate on the basis of 12 months moving average increased to 6.2 per cent for the year 2000 compared to 4.7 percent in 1999.

The Census and Statistics Department said that the Colombo Consumers’ Price Index (CCPI) for the month of December, 2000 was 2693.0. This shows an increase of 106.3 index points or 4.1 percent from the November index number of 2586.7. This is an increase of Rs. 214.91 in the Expenditure Value of "Market basket" when compared to November, 2000.

The increase in the CCPI for December, 2000 is mainly due to increase in prices of rice, wheat, flour, bread, sugar, Lactogen, red onions, garlic, eggs, beef, sour plantains, some varieties of fresh fish and dried fish, most varieties of vegetables, kerosene oil and cigarettes. The price increase in food items can be mainly attributed to high demand of consumer goods in the festive season and the influence of the increase in price of diesel.

However, prices of dried chillies, pepper, tamarind, limes, some varieties of fresh fish and some varieties of dried fish have decreased during this month.