Inflation decreased significantly to 3.8 per cent in January 2012 from 4.9 per cent in December 2011, says the Central Bank.
The annual average inflation also decreased to 6.5 per cent in January from 6.7 per cent in December 2011, the Bank further said.
In addition, the core inflation, which is computed by excluding the items of fresh food, energy, transport, rice and coconut from the CCPI basket, continued to decline for the fourth consecutive month to 6.7 per cent on an annual average basis in January 2012.
The prices of the sub category of Food and non alcoholic beverages decreased by 0.3 per cent in January compared to December 2011. Within the Food sub category, prices of some varieties of vegetables, potatoes, big onions, limes, green chillies, dried chillies and sugar declined due to improvements in supply.