1

The CAL UPI rose by c.4.3% YoY, with the index increasing c.1.9%

during the month (vs. a c.0.5% MoM decline last year). Food and

Beverage (F&B) prices increased by c.3.4% MoM, while

transportation, communication and energy increased by c.0.6%

MoM. During the last 12-months, F&B rose c.8.3% and

transportation, communication and energy rose c.1.1%.

Food and Beverage prices increased by 3.4% MoM and 8.3% YoY –

Prices of most upcountry vegetables saw a sharper increase

contributing to the 3.4% MoM increase in the F&B Index. The 8.3% YoY

increase was driven by increases in prices across all vegetables (top

contributors included green chilies, tomatoes, carrots and green beans)

as supply came under pressure due to adverse weather conditions that

prevailed in the country.

Transportation, Communication and Energy increased by 0.6%

MoM and rose marginally by 1.1% YoY – Expenditure on

transportation, communication and energy increased by c.0.6% during

the month due to a shorter electricity billing cycle in June (shorter cycles

result in higher charges) and increased marginally by +c.1.1% YoY due

to an increase in communication expenses (+5% tax on

telecommunication services in January 2014) and transportation

expenses (+7% hike in bus fare in November 2013).

123.87

129.24

114.02 117.18

105

110

115

120

125

130

135

CAL UPI CCPI

CAL URBAN PRICE INDEX (CAL UPI)

The CAL UPI (+4.3% YoY) vs. CCPI (+2.8% YoY) in June 2014

CAL UPI (2012) vs. CCPI (2006/2007)

CAL Research

Level 5, “Millennium

House”,

No.46/58, Nawam

Mawatha,

Colombo 2

Tel: +94 11 231 7777

Email: calresearch@cal.lk

Refer Appendix 1 for

CAL UPI Sub-Indices

Note: The CCPI measures inflation for all consumers. The CAL UPI measures

urban inflation for households earning more than LKR 80k/month

REFER p.5 FOR DISCLAIMER

2

120.5

130.7

110.0

115.0

120.0

125.0

130.0

135.0

Food & Beverages Index

+8.5% YoY

111.5

117.9

108.0

110.0

112.0

114.0

116.0

118.0

120.0

Personal Care Index

+5.8% YoY

116.2

123.4

112.0

114.0

116.0

118.0

120.0

122.0

124.0

Water, Transport & Communication Index

+6.2% YoY

132.4

131.3

128.0

129.0

130.0

131.0

132.0

133.0

134.0

Energy Index

-0.8% YoY

Appendix 1 - CAL UPI Sub-Indices

Personal Care includes:

Toothpaste, Soap, Shampoo,

and Laundry Detergent &

Dishwashing Soap

Energy includes: Fuel, Gas &

Electricity

3

Income Level

We have assumed an LKR 80k average middle class household income per month, taking

two working members in a family of four.

CAL UPI Basket

The items in the CAL UPI basket are samples that represent a wider range of goods and

services purchased by urban middle class households. There are 36 individual goods and

services in the basket, as listed in Tables 1 & 2. Certain items have been taken as proxies for

others not included, but exhibit similar price changes. For example, chili powder is taken as a

proxy for other condiments not included in the basket.

The following items have not been considered in the CAL UPI basket:

Health - Primary level universal health care is provided free of charge in Sri Lanka.

Further, a majority of the middle class population is covered by insurance

schemes paid by employers.

Education - Sri Lanka has a free, compulsory education system for primary and

secondary students up to the age of 18.

Accommodation – For a more objective analysis, we have not included rent.

Appendix 2 - CAL UPI Basket

4

Items Qty

Beans(Green) 2.6 Kg

Carrots 2.2 Kg

Tomatoes 2.2 Kg

Potatoes 3.5 Kg

Rice (samba) 22.2 Kg

Wheat flour 3.0 Kg

Bread 20.5 Kg

Mysoore Dhal 4.6 Kg

Coconuts 17.3 Kg

Chicken(broiler) 7.2 Kg

Fish(kelewalla) 3.5 Kg

Dried fish(katta) 1.6 Kg

Milk(Anchor) 2.4 Kg

Eggs 32

Sugar(White) 4.2 Kg

Tea Dust 1.0 Kg

Fruits - Banana(ambul) 3.8 Kg

Coconut oil(Bottled) 2.4 Liters

Bombay (Big) onions 6.3 Kg

Green chillies 1.4 Kg

Garlic 1.6 Kg

Chilly powder 1.1 Kg

Other Foods (Ice Cream) 2.4 Kg

Toilet Soap 8 bars

Shampoo 3 bottles

Magarine 1 Kg

Toothpaste 4 tubes

Washing Powder 1 Kg

Dishwashing Soap 3 bars

Table 1 - Food and Non Alcoholic Beverages Table 2 - Fuel, Light, Transportation &

Communication

5

Research Team Tel No: +94 11 231 7777 (General) Email: teamresearch@cal.lk

Head of Research Purasisi Jinadasa Tel No: +94 11 231 7786 Email: purasisi@cal.lk Udeeshan Jonas Tel No: +94 11 231 7782 Email: udeeshan@cal.lk Thushani de Silva Tel No: +94 11 231 7777 (Ext: 7815) Email: thushani@cal.lk Devin Karunaratne Email: devin@cal.lk Christeen Silva Email: christeen@cal.lk Teresh Amaratunga Email: teresh@cal.lk

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