Sri Lanka’s inflation rate drops to single digit, 6.2% YoY in July

August 01, 2023 (MLN): The Sri Lanka Columbo Consumer Price Index (CCPI) for the month of July 2023 fell to single-digit, easing to 6.2% YoY, compared to 12% YoY in June, the latest data issued by the Department of Census and Statistics of Sri Lanka showed today.

To note, this was the first time Sri Lanka recorded a single-digit inflation since September 2021, when it was 5.8%. While the highest inflation recorded was 69.8% in September last year.

Moreover, on a sequential basis, consumer prices fell by 1.1% MoM, following a flat reading in June.

Meanwhile, core inflation, which excludes volatile items, eased to 6.1% YoY as compared to 9.1% in the previous month.

The CCPI for all items for the month of July 2023 was 190.2, marking a decrease of 2.1 in index points compared to June 2023.

Food inflation declined for the first time since 2019 to 1.4% as compared to 4.1% in June.

Inflation also decelerated for non-food items, clocking in at 10.5% as compared to 16.2% in the previous month.

The CCPI is an economic indicator constructed to measure inflation which is defined as a percentage change in CCPI over the year. There are two measures of inflation in general use.

The CCPI is compiled to indicate average changes in the prices of goods and services purchased by households in urban areas of Colombo district.

The price collection of the index (Base 2021=100) has covered 10 price collection centers in Peliyagoda, Maradana, Wellawatta, Dematagoda Grandpass, Kirulapone, Nugegoda, Rathmalana, and two Dedicated Economic Centers namely Narahenpita and Rathmalana.

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