Inflation dips to 3% in January | Daily News

Inflation dips to 3% in January

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100) decreased to 3 per cent in January 2021 from 4.2 per cent in December 2020. This was due to the statistical effect of the high base that prevailed during January 2020.

Meanwhile, Food inflation (Y-o-Y) decreased to 6.8 per cent in January 2021 from 9.2 per cent in December 2020. Further, Non-food inflation (Y-o-Y) decreased to 1.4 per cent in January 2021 from 2.0 per cent in December 2020.

The change in the CCPI measured on an annual average basis decreased to 4.3 per cent in January 2021 from 4.6 per cent in December 2020.

Monthly change of CCPI recorded at 0.51 per cent in January 2021. 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 recorded at 0.29 per cent and 0.22 per cent, respectively, in January 2021.

Accordingly, within the Food category, prices of red onion, coconut and sea fish increased in January 2021. However, the price of big onions recorded a decline during the month. Meanwhile, prices of items in the Non-Food category recorded an increase during the month mainly due to price increase observed in the Health (payments to private hospitals) sub-category.

The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, decreased to 2.7 per cent in January 2021 from 3.5 per cent in December 2020. However, annual average core inflation remained unchanged at 3.1 per cent in January 2021.