CCPI-based inflation increased last month

Headline inflation as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index increased to 6.2 per cent in February from 5.7 per cent in January. This was mainly driven by the statistical effect of the low base that prevailed in February. Food inflation (Y-o-Y) stood at 14.7 per cent in February 2020, while non-food inflation (Y-o-Y) recorded at 2.8 per cent.

The change in the CCPI measured on an annual average basis increased to 4.6 per cent in February from 4.5 per cent in January, the Central Bank said in a public announcement. 

Setting off the price effects of items in the food category, which declined by 0.2 per cent, the prices in the non-food category increased by the same magnitude. Within the food category, prices of vegetables, rice, big onions, potatoes, sea fish and red onions recorded decreases in February. However, prices of items in the non-food category recorded increases during the month owing to price increases of the items in Transportation (airline fair); Clothing and Footwear; and Recreation and Culture sub-categories, the bank said. 

The core inflation, which reflects the underlying inflation in the economy, increased to 3.2 per cent last month from 3 per cent in January on a year-on-year basis. However, annual average core inflation decreased to 5.1 per cent in February from 5.3 per cent in January. (BS)