Inflation hits 58.9% in June 2022

COLOMBO (News 1st); Headline inflation, as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100)1 increased to 58.9% in June 2022 from 45.3% in May 2022. This increase in Y-o-Y inflation was driven by the monthly increases in both Food and Non-Food categories.

Accordingly, Food inflation (Y-o-Y) increased to 75.8% in June 2022 from 58.0% in May 2022, while Non-Food inflation (Y-o-Y) increased to 43.6% in June 2022 from 34.2% in May 2022.

Monthly change of NCPI recorded at 10.91% in June 2022 due to price increases observed in items of both Food and Non-Food categories which were 7.25% and 3.66%, respectively. Accordingly, within
the Food category, prices of rice, vegetables, fresh fish, sugar, milk powder and dried fish recorded increases during the month. Further, within the Nonfood category, increases were observed in prices
of Transport (Petrol, diesel and bus fare), Furnishing, Household Equipment and Routine Household Maintenance, and Restaurants and
Hotels sub-categories during the month.

Meanwhile, annual average inflation rose to 20.8% in June 2022 from 16.3% in May 2022.

The core inflation (Y-o-Y), which reflects the underlying inflation in the economy increased to 49.3% in June 2022 from 37.7% in May 2022, while annual average core inflation increased to 16.8% in June 2022 from 13.0% in May 2022.