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Inflation increases to 4.2% in December

01 Jan 2021

Headline inflation, as measured by the year-on-year (YoY) change in the Colombo Consumer Price Index (CCPI, 2013=100) increased marginally to 4.2% in December 2020, from 4.1% in November 2020. This was driven by the monthly increase of prices of items in both Food and Non-Food categories. Meanwhile, food inflation (YoY) decreased to 9.2% in December 2020, from 10.3% in November 2020. However, non-food inflation (YoY) increased to 2% in December 2020, from 1.6% in November 2020. The change in the CCPI, measured on an annual average basis, remained unchanged at 4.6% in December 2020 for the third consecutive month. The CCPI’s monthly change was recorded at 0.66% in December 2020. This was due to price increases observed in items of both Food and Non-Food categories. Moreover, monthly changes of Food and Non-Food categories were recorded at 0.45% and 0.22%, respectively, in December 2020. Accordingly, within the Food category, prices of coconut, vegetables, and rice increased in December 2020. Meanwhile, prices of items in the Non-Food category recorded an increase during the month, mainly due to price increases observed in the Transport (bus fare) and Health (private medical doctor fee) sub-categories. The core inflation (YoY), which reflects the underlying inflation in the economy, increased to 3.5% in December 2020, from 3% in November 2020. However, annual average core inflation declined marginally to 3.1% in December 2020, from 3.2% in November 2020.


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