Headline inflation increased to 6-pct in August 2021

Headline inflation, as measured by the year-on-year change in the Colombo Consumer Price Index, increased to 6.0 percent in August 2021 from 5.7 percent in July 2021 driven by monthly increases of prices of items in both Food and Non-food categories.

Subsequently, Food inflation (Y-o-Y) increased to 11.5 percent in August 2021 from 11.0 percent in July 2021, while Non-food inflation (Y-o-Y) increased to 3.5 percent in August 2021 from 3.2 percent in July 2021.

The CCPI, measured on an annual average basis, increased marginally to 4.3 percent in August 2021 from 4.2 percent in July 2021.

Monthly change of CCPI recorded at 0.28 percent in August 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 0.21 percent and 0.06 percent, respectively. Accordingly, within the Food category, prices of fresh fish, fresh fruits, sugar and chicken increased, whereas prices of rice and coconut recorded decreases. Meanwhile, prices of items in the Non-Food category recorded increases mainly due to price increases observed in the Health (Payments to private hospitals/ nursing homes) and Furnishing Household Equipment and Routine Household Maintenance sub-categories during the month.

The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, increased to 4.1 percent in August 2021 from 3.7 percent in July 2021. Moreover, annual average core inflation increased marginally to 3.2 percent in August 2021 from 3.1 percent in July 2021.