Inflation on steady rise | Sunday Observer

Inflation on steady rise

8 May, 2022

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100) increased to 29.8% in April 2022 from 18.7% in March 2022.

This increase in Y-o-Y inflation was driven by the monthly increases of Food and Non-Food categories.

Subsequently, Food inflation (Y-o-Y) increased to 46.6% in April 2022 from 30.2% in March 2022, while Non-Food inflation (Y-o-Y) increased to 22.0% in April 2022 from 13.4% in March 2022.

The monthly change of CCPI was recorded at 9.25% in April 2022 due to price increases observed in items of both Non-Food and Food categories which were 4.95% and 4.31%.

Accordingly, prices of items in the Non-Food category recorded increases mainly due to price increases observed in the Transport (Petrol and Diesel), Education (Tuition fees), Housing, Water, Electricity, Gas and Other Fuel (Housing rent, Maintenance and Reconstruction) and Restaurant and Hotels sub-categories. Within the Food category, increases were observed in prices of milk powder, rice, bread, dhal, sugar and dried fish during the month.

Annual average inflation rose to 11.3% in April 2022 from 9.1% in March 2022. The core inflation (Y-o-Y), which reflects the underlying inflation in the economy increased to 22.0% in April 2022 from 13.0% in March 2022, while annual average core inflation increased to 8.1% in April 2022 from 6.5% in March 2022.