Inflation, as measured by the change in the Colombo Consumers' Price Index (CCPI) , declined to 3.5 percent in August 2014 on a year-on-year basis after rising to 3.6 percent in July, figures released by the Census and Statistics Department Friday showed .
The year on year inflation has been in single digit figures for 64 months continuously.
Annual average inflation, which declined since June 2013, declined further to 4.5 percent in August 2014, from 4.7 percent in the previous month.
The general price level decreased in August 2014 by 0.5 percent for the first time in 10 months compared to the prices in the previous month. The absolute CCPI computed by the Department of Census and Statistics dropped to 182.3 from 183.2 in July.
Decline in prices of certain food items, mainly in vegetables, Potatoes, Red onions, Green Chilies, Coconuts and Sugar offset the rise in prices of rice contributing to the overall decline in the index for August.