Inflation as per CCPI goes to single digit in July after 20 months

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index has decreased to 6.3% in July from 12% in June 2023. 

The shift to single digit took nearly 20 months and the Central Bank said it is broadly in line with the disinflation path it envisaged in January 2023.

The Food inflation (Y-o-Y) decreased to -1.4% in July 2023 from 4% in June 2023, whereas the Non-Food inflation (Y-o-Y) decreased to 10.5% in July from 16.2% in June 2023. 

Monthly change of CCPI recorded at 0.01% in July due to price decreases observed in items of Non-Food category, which was 1.13%. 

The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, decreased to 6.1% in July from 9.8% in June 2023.

Looking ahead, based on the latest macroeconomic projections of the CBSL and available information, it said the anticipated declining trend of inflation is expected to continue through 2023 and anticipated improvements in domestic supply conditions, along with the favourable statistical base effect.