CCPI based Inflation increased marginally to 4.2 per cent in December 2020

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100) increased marginally to 4.2 per cent in December 2020 from 4.1 per cent in November 2020. This was driven by monthly increase of prices of items in both Food and Non-food categories. Meanwhile, Food inflation (Y-o-Y) decreased to 9.2 per cent in December 2020 from 10.3 per cent in November 2020. However, Non-food inflation (Y-o-Y) increased to 2.0 per cent in December 2020 from 1.6 per cent in November 2020.

The change in the CCPI measured on an annual average basis remained unchanged at 4.6 per cent in December 2020 for the third consecutive month.

Monthly change of CCPI recorded at 0.66 per cent in December 2020. This was due to price increases observed in items of both Food and Non-food categories. Moreover, monthly changes of Food and Non-food categories recorded at 0.45 per cent and 0.22 per cent, respectively, in December 2020. Accordingly, within the Food category, prices of coconut, vegetables and rice increased in December 2020. Meanwhile, prices of items in the Non-Food category recorded an increase during the month mainly due to price increases observed in the Transport (bus fare) and Health (private medical doctor fee) sub-categories.

The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, increased to 3.5 per cent in December 2020 from 3.0 per cent in November 2020. However, annual average core inflation declined marginally to 3.1 per cent in December 2020 from 3.2 per cent in November 2020.

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Published Date: 

Thursday, December 31, 2020