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Sri Lanka’s headline inflation increased to 6.8-pct in July 2021

Headline inflation, as measured by the National Consumer Price Index has increased to 6.8 percent in July 2021 from 6.1 percent in June 2021 driven by the monthly increases of prices of items in both Food and Non-food categories.

Accordingly, Food inflation (Y-o-Y) increased to 11.0 percent in July 2021 from 9.8 percent in June 2021 and Non-Food inflation (Y-o-Y) increased to 3.2 percent in July 2021 from 2.9 percent in June 2021. The NCPI, measured on an annual average basis, remained unchanged at 5.4 percent in July 2021.

The monthly change of NCPI recorded at 0.63 percent in July 2021 due to increases observed in prices of items in both Food and Non-food categories. Moreover, monthly changes of Food and Non-food categories recorded at 0.37 percent and 0.27 percent, respectively.

Accordingly, within the Food category, prices of sugar, vegetables, dried fish, and fresh fish increased whereas, prices of coconut and coconut oil recorded decreases.

Moreover, prices of items in the Non-Food category recorded an increase mainly due to price increases observed in the Transport (Petrol and Diesel) and Restaurant and Hotels sub-categories during the month.

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Further, year-on-year core inflation increased to in 4.

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4 percent July 2021 from 4.1 percent in June 2021, while annual average core inflation remained unchanged at 4.4 percent in July 2021.

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