Inflation increases to over 4% in March

Headline inflation, as measured by the year-on-year (YOY) change in the Colombo Consumer Price Index, increased to 4.1% in March 2021 from 3.3% in February 2021, the Central Bank said in a statement yesterday.

This was due to the statistical effect of the low base prevailing in March 2020.

Meanwhile, Food inflation (YOY) increased to 9.6% in March from 7.9% in February. Further, Non-food inflation (YOY) increased to 1.8% in March from 1.3% in February.

The change in the CCPI measured on an annual average basis decreased to 4% in March from 4.1% in February.  Monthly change of CCPI recorded at -0.18% in March 2021.

This was due to price decreases observed in items of the Food category. Moreover, monthly changes of food and non-food categories recorded at -0.49% and 0.31%, respectively, in March.

Accordingly, within the food category, prices of vegetables, green chilli, fresh fish and turmeric powder decreased in March.

Meanwhile, prices of items in the non-food category recorded an increase during the month mainly due to price increases observed in the Restaurant and Hotels sub-category.

The core inflation (YOY), which reflects the underlying inflation in the economy, increased to 3.1% in March from 2.6% in February. Meanwhile, annual average core inflation remained unchanged at 3% in March.