Producer prices in Sri Lanka increased 2.2 percent year-on-year in September 2018, following a downwardly revised 6.0 percent rise in the previous month. It was the lowest producer inflation since September 2016, as prices slowed for manufacturing (11 percent from 13.2 percent), mostly due to food products & beverages (-1.1 percent); and dropped further for agriculture (-12.8 percent from -5.5 percent in August), namely due to a decline in cost of vegetables (-18 percent); cereals (-16 percent) and fruits & nuts (-13.1 percent). Contrarily, prices advanced faster for electricity & water supply (2.6 percent from 1.3 percent). On a monthly basis, producer prices went down 2.3 percent, following a 1.9 percent drop in September. Producer Prices Change in Sri Lanka averaged 7.44 percent from 2015 until 2018, reaching an all time high of 20.30 percent in April of 2017 and a record low of -3.40 percent in January of 2016.
Producer Prices Change in Sri Lanka is expected to be 5.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in Sri Lanka to stand at 5.40 in 12 months time. In the long-term, the Sri Lanka Producer Prices Change is projected to trend around 3.80 percent in 2020, according to our econometric models.