1

The CAL UPI rose by c.1.7% YoY, with the index declining c.0.4%
during the month (vs. a c.0.5% MoM decrease last year). Food and
Beverage (F&B) prices remained flat MoM (+0.1%), while
transportation, communication and energy prices declined c.0.8%.
During the last 12-months, F&B increased c.4.2% and
transportation, communication and energy declined c.0.2%.

Food and Beverage prices remained unchanged MoM and
increased c.4.2% YoY Prices of most vegetables remained
unchanged contributing to the index remaining flat MoM. The c.4.2%
YoY increase was driven by increases in prices across most food items
(top contributors to the increase included green chilies, green beans
and rice).

Transportation, Communication and Energy declined 0.8% MoM
and declined 0.2% YoY Expenditure on transportation,
communication and energy declined compared to the previous month
as a result of the 3.1% reduction in petrol prices. However, the
reduction in petrol prices were offset by an increase in communication
expenses (+5% tax on telecommunication services in January 2014)
and transportation expenses (+7% hike in bus fare in November 2013)
during the year, resulting in the 0.2% YoY decline.








123.52
125.66
113.57
117.51
105
110
115
120
125
130
135
CAL UPI CCPI
CAL URBAN PRICE INDEX (CAL UPI)
The CAL UPI (+1.7% YoY) vs. CCPI (+3.5% YoY) in September 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 important disclaimer

2








119.5
124.5
110
115
120
125
130
135
Food & Beverages Index
+4.2% YoY
113.9
117.9
111
112
113
114
115
116
117
118
119
Personal Care Index
+3.5% YoY
116.2
123.4
112
114
116
118
120
122
124
Water, Transport & Communication Index
+6.2% YoY
132.4
128.8
126
128
130
132
134
Energy Index
-2.7% YoY
REFER p.5 FOR DISCLAIMER
Appendix 1 - CAL UPI Sub-Indices
Personal Care includes:
Toothpaste, Soap, Shampoo,
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 (Loaves) 21
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



Items kgs/ltrs
Petrol (ltr) 84
Electricity (Units) 187
Water (Units) 28
L.P. Gas (kgs) 12.5
Bus fare (Journeys) 240
Communication (Minutes) 1,000
Television Subscription 1

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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