Headline inflation as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100) marginally decreased to 4% in September from 4.1% in August.
This was driven by the statistical effect of the high base prevailed in September 2019. Food inflation (Y-o-Y) decreased to 11.5% in September from 12.3% in August, whereas non-food inflation (Y-o-Y) increased to 0.9% in September from 0.8% in August.
The change in the CCPI measured on an annual average basis also decreased to 4.7% in September from 4.8% in August.
Monthly change of CCPI recorded at 0.7% in September. This was due to price increases observed in items of both food and non-food categories.
Accordingly, within the food category, prices of vegetables, coconut, fresh fruits and big onion increased in September. Within the non-food category, prices of items in alcoholic beverages, tobacco and narcotics, and transport sub-categories increased during the month.
The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, declined to 2.9% in September from 3.2% in August. Moreover, annual average core inflation also declined to 3.6% in September from 3.8% in August.
(FT)