Sri Lanka’s CCPI based Inflation eased off to 5.7% in September 2021

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100), eased off to 5.7 percent in September 2021 from 6 percent in August 2021.

This was due to the statistical effect of the high base prevailed in September 2020. Subsequently, Food inflation (Y-o-Y) decreased to 10.0 percent in September 2021 from 11.5 percent in August 2021, while Non-food inflation (Y-o-Y) increased to 3.8 percent in September 2021 from 3.5 percent in August 2021.

The CCPI, measured on an annual average basis, increased to 4.5 percent in September 2021 from 4.3 percent in August 2021.

Monthly change of CCPI was recorded at 0.47 percent in September 2021 due to price increases observed in items of both Food and Non-food categories. Moreover, monthly changes of Food and Non-food categories were recorded at 0.09 percent and 0.38 percent, respectively. Accordingly, within the Food category, prices of dhal, bread, and chicken increased, whereas prices of rice and vegetables recorded decreases. Meanwhile, prices of items in the Non-Food category recorded increases mainly due to price increases observed in the Health (Fees to private medical practices and ayurvedic practitioners) and Education (International School fees: primary and secondary) sub-categories during the month.

The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, increased to 5.0 percent in September 2021 from 4.1 percent in August 2021. Moreover, annual average core inflation increased marginally to 3.3 percent in September 2021 from 3.2 percent in August 2021.