Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100), increased to 5.2 per cent in June 2021 from 4.5 per cent in May 2021.
This was driven by monthly increases of prices of items in both Food and Non-food categories. Consequently, Food inflation (Y-o-Y) increased to 11.3 per cent in June 2021 from 9.9 per cent in May 2021, while Non-food inflation (Y-o-Y) increased to 2.5 per cent in June 2021 from 2.2 per cent in May 2021.
The CCPI, measured on an annual average basis, increased to 4.1 per cent in June 2021 from 3.9 per cent in May 2021.
Monthly change of CCPI recorded at 1.47 per cent in June 2021 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 1.25 per cent and 0.21 per cent, respectively.
Hence, within the Food category, prices of rice, vegetables and fresh fish increased whereas the price of fresh fruits recorded a decrease. Meanwhile, prices of items in the Non-Food category recorded an increase during the month due to price increases observed in the Health (Purchase of pharmacy products, Fees to Ayurveda doctors) and Transport (Petrol, Diesel) sub-categories.
The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, remained unchanged at 3.2 per cent in June 2021. Moreover, annual average core inflation also remained unchanged at 3.0 per cent in June 2021 for the fifth consecutive month.
According to most economists and social analysts who categorize these statistics, the country is moving from a crisis to a disaster with regard to the economy and as such, the day-to-day lives of the majority of the island's populace is heading towards a drastic end of deficiency.