Inflation increases to 4.2% in July 2020

August, 4, 2020

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 4.2% in July 2020 from 3.9% in June 2020.

This was mainly driven by monthly increase of prices of items in Non-food category along with the statistical effect of the low base prevailed in July 2019.

Food inflation (Y-o-Y) increased to 10.9% in July 2020 from 10.0%  in June 2020. Further, Non-food inflation (Y-o-Y) also increased marginally to 1.5% in July 2020 from 1.4%  in June 2020.

The change in the CCPI measured on an annual average basis also increased marginally to 4.8% in July 2020 from 4.7% in June 2020.

Monthly change of CCPI recorded at 0.1%  was mainly due to net effect of price changes observed in the items of the Non-food category. Within the Nonfood category, prices of items in Health (payments to private hospitals/ nursing homes) sub-category increased during the month.

Meanwhile, prices of items in the Food category also recorded marginal increases in July 2020. The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, increased marginally to 3.2% in July 2020 from 3.1% in June 2020.

However, annual average core inflation declined further to its sixteen months low of 4.0% in July 2020 from 4.2% in June 2020.

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