CCPI based headline inflation accelerated in June

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI) had accelerated to 1.7% in June 2024 from 0.9% in May 2024. 

Central Bank said this acceleration in the headline inflation is broadly in line with its projections. “Even with this acceleration, inflation remained well below the inflation target of 5%,” CBSL added. 

It said food inflation (Y-o-Y) accelerated to 1.4% in June 2024 from 0.0% in May 2024. Further, Non-Food inflation (Y-o-Y) accelerated to 1.8% in June 2024 from 1.3% in May 2024. 

On a month-on-month basis, inflation increased marginally after declining for 3 consecutive months. Accordingly, the monthly percentage increase of CCPI was 0.77% in June 2024.

The core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, accelerated to 4.4% in June 2024 from 3.5% in May 2024.

“Based on the available data, inflation is expected to remain below the target of 5%, in the near term. Over the medium term, inflation is expected to align with and remain around the target level, supported by suitable policy interventions,” CBSL added.