Colombo inflation breaches 60%; food inflation tops 90%

Inflation in the Colombo district as measured by the year-on-year (YoY) change in the Colombo Consumer Price Index breached 60 percent in July making Sri Lankans poorer amid an economic crisis, which is yet to show any signs of lessening. 

The headline inflation in June increased to 60.8 percent in July from 54.6 percent a month ago, as YoY food inflation surged to 90.9 percent from 80.1 percent in June while the non-food prices rose 46.5 percent from
42.4 percent.

Monthly change of CCPI recorded at 4.51 percent in July 2022 due to price increases observed in items of both non-food and food categories which were 2.31 percent and 2.20 percent, respectively. 

Accordingly, prices of items in the Non-Food category recorded increases mainly due to price increases observed in the transport (petrol, diesel, air fare and bus fare), restaurant and hotels and housing, water, electricity, gas and other fuel (LP gas, firewood and maintenance/reconstruction) sub-categories. Food category increases were observed in milk powder, rice and fresh fish. 

However, prices of vegetables, coconut and coconut oil decreased during the month.

Meanwhile, annual average inflation rose to 23.1 percent in July 2022 from 18.4 percent in June 2022.

The core inflation, which reflects the underlying inflation in the economy, increased to 44.3 percent in July from 39.9 percent in June, while annual average core inflation increased to 16.7 percent from 13.3 percent in June.