CCPI-based inflation eased in September 2020

Headline inflation as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100)1 marginally decreased to 4 per cent in September 2020 from 4.1 per cent in August 2020. 
This was driven by the statistical effect of the high base prevailed in September 2019. Food inflation (Y-o-Y) decreased to 11.5 per cent in September 2020 from 12.3 per cent in August 2020, whereas Non-food inflation (Y-o-Y) increased to 0.9 per cent in September 2020 from 0.8 per cent in August 2020, the Central Bank said in a media release.
The change in the CCPI measured on an annual average basis also decreased to 4.7 per cent in September 2020 from 4.8 per cent in August 2020.
The monthly change of CCPI was recorded at 0.7 per cent in September 2020. This was due to price increases observed in items of both Food and Non-food categories.
Accordingly, within the Food category prices of vegetables, coconut, fresh fruits and big onion increased in September 2020. Within the Non-food category, prices of items in Alcoholic beverages, Tobacco and Narcotic, and Transport sub-categories increased during the month.
The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, declined to 2.9 per cent in September 2020 from 3.2 per cent in August 2020. Moreover, annual average core inflation also declined to 3.6 per cent in September 2020 from 3.8 per cent in August 2020.