CCPI-based inflation up 5.7% in July

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100)1, increased to 5.7% in July 2021 from 5.2% in June 2021.  Central Bank said this was driven by monthly increases of prices of items in the Non-food category.

Subsequently, Food inflation (Y-o-Y) decreased to 11.0% in July 2021 from 11.3% in June 2021, while Non-food inflation (Y-o-Y) increased to 3.2% in July 2021 from 2.5% in June 2021.

The CCPI, measured on an annual average basis, increased marginally to 4.2% in July 2021 from 4.1% in June 2021.

Monthly change of CCPI recorded at 0.50% in July 2021 due to price increases observed in items of the Non-food category. Moreover, monthly changes of Food and Non-food categories recorded at -0.05% and 0.55%, respectively. 

Accordingly, within the Food category, prices of coconut, fresh fish and coconut oil decreased. Meanwhile, prices of items in the Non-Food category recorded an increase during the month due to price increases observed in the Transport (Petrol) and Restaurant and Hotels subcategories.

The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, increased to 3.7% in July 2021 from 3.2% in June 2021. Moreover, annual average core inflation increased marginally to 3.1% in July 2021 from 3.0% in June 2021, the Central Bank added.