Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100), decreased to 5.7 per cent in September 2021 from 6.0 per cent 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 per cent in September 2021 from 11.5 per cent in August 2021, while Non-food inflation (Y-o-Y) increased to 3.8 per cent in September 2021 from 3.5 per cent in August 2021.
The CCPI, measured on an annual average basis, increased to 4.5 per cent in September 2021 from 4.3 per cent in August 2021.
Monthly change of CCPI recorded at 0.47 per cent 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 recorded at 0.09 per cent and 0.38 per cent, 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 per cent in September 2021 from 4.1 per cent in August 2021. Moreover, annual average core inflation increased marginally to 3.3 per cent in September 2021 from 3.2 per cent in August 2021.