CCPI based annual average headline inflation rises to 6.9 per cent, while Y-o-Y inflation increases to 14.2 per cent in January 2022

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100)1, increased to 14.2 per cent in January 2022 from 12.1 per cent in December 2021. Meanwhile, on an annual average basis, the CCPI increased to 6.9 per cent in January 2022 from 6.0 per cent in December 2021.

Inflation was driven by monthly increases of prices of items in both Food and Non-food categories. Subsequently, Food inflation (Y-o-Y) increased to 25.0 per cent in January 2022 from 22.1 per cent in December 2021, while Non-food inflation (Y-o-Y) increased to 9.2 per cent in January 2022 from 7.5 per cent in December 2021.

Monthly change of CCPI recorded at 2.43 per cent in January 2022 due to price increases observed in items of both Food and Non-food categories which were 1.15 per cent and 1.28 per cent, respectively. Accordingly, within the Food category, prominent increases were observed in prices of rice, fresh fruit, milk powder, and bread. Further, prices of items in the Non-Food category recorded increases mainly due to price increases observed in the Transport (Petrol, Diesel, Bus fare), Housing, Water, Electricity, Gas and other fuel (Housing Rent, Maintenance/Reconstruction), Education (Course fees for higher education and vocational training), and Restaurant and Hotels sub-categories during the month.

The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, increased to 9.9 per cent in January 2022 from 8.3 per cent in December 2021. Moreover, annual average core inflation increased to 5.0 per cent in January 2022 from 4.4 per cent in December 2021.