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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