Consumer index-based inflation increased to 4.5 % in May

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI), increased to 4.5 percent in May from 3.9 per cent in April, the Central Bank said.

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 percent in May 2021 from 9 percent in April 2021, while Non-food inflation (Y-o-Y) increased to 2.2 percent in May 2021 from 1.8 percent in April 2021.

The CCPI, measured on an annual average basis, remained unchanged at 3.9 percent in May 2021. Monthly change of CCPI was recorded at 1.05 percent 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 wer recorded at 0.69 percent and 0.36 percent, 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 percent in May 2021 from 3.0 percent in April 2021. Meanwhile, annual average core inflation remained unchanged at 3.0 percent in May 2021 for the fourth consecutive month.