Headline inflation as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100)1 declined to 5.4 per cent in March 2020 from 6.2 per cent in February 2020. This was due to the decline in the prices of items in the Food category.
Food inflation (Y-o-Y) declined to 12.8 per cent in March 2020 from 14.7 per cent in February 2020, while Non-food inflation (Y-o-Y) recorded at 2.5 per cent in March 2020. However, the change in the CCPI measured on an annual average basis increased to 4.7 per cent in March 2020 from 4.6 per cent in February 2020.
The monthly change of CCPI recorded at -0.9 per cent in March 2020 and it was due to the price declines observed in the items of the Food category. Within the Food category, prices of vegetables, red onions and bread recorded declines in March 2020.
However, prices of items in the Non-Food category recorded increases during the month owing to price increases of the items in Health (blood tests fee) and Transportation (airline fair) sub-categories. Continuing its declining trend for the sixth consecutive month, the core inflation (Y-O-Y) declined to 2.9 per cent in in March 2020 from 3.2 per cent in February 2020. Meanwhile, annual average core inflation also declined to its four month low of 4.9 per cent in March 2020 from 5.1 per cent in February 2020.