Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100), increased to 4.5 per cent in May 2021 from 3.9 per cent in April 2021. This was driven by monthly increases of prices of items in both Food and Non-food categories. Accordingly, Food inflation (Y-o-Y) increased to 9.9 per cent in May 2021 from 9.0 per cent in April 2021, while Non-food inflation (Y-o-Y) increased to 2.2 per cent in May 2021 from 1.8 per cent in April 2021.
The CCPI, measured on an annual average basis, remained unchanged at 3.9 per cent in May 2021.
Monthly change of CCPI recorded at 1.05 per cent in May 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 0.69 per cent and 0.36 per cent, respectively. Accordingly, within the Food category, prices of fresh fish, coconut oil and rice increased, whereas prices of fresh fruits and vegetables recorded decreases. Meanwhile, prices of items in the Non-Food category recorded an increase due to price increases observed in the Health (Payments to medical laboratories, Payments to private hospitals/ nursing homes room charges) and Housing, Water, Electricity, Gas and Other Fuels (Materials for the maintenance, L. P. Gas) sub-categories.
The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, increased to 3.2 per cent in May 2021 from 3.0 per cent in April 2021. Meanwhile, annual average core inflation remained unchanged at 3.0 per cent in May 2021 for the fourth consecutive month.