The overall inflation rate, as measured by the Colombo Consumer Price Index (CCPI) on a Year-on-Year basis, increased to 2.4% in July 2024, up from 1.7% in June 2024, according to the Department of Census and Statistics.
The CCPI for all items in July 2024 stood at 194.7, marking a decrease of 0.9 index points or 0.44% compared to June 2024, where the index was 195.6. This decline corresponds to a reduction in expenditure value by Rs. 788.98 in the “Market Basket.”
Year-on-Year inflation for July 2024 was 2.4%, compared to 1.7% in June 2024. The Year-on-Year inflation for the Food Group rose slightly to 1.5% in July 2024 from 1.4% in June 2024, while the Non-Food Group saw a more significant increase, reaching 2.8% in July 2024, up from 1.8% in June 2024.
The month-on-month change was influenced by a slight increase in food prices by 0.03%, while non-food items decreased by 0.47%, the report stated.
The CCPI is an economic indicator used to measure inflation, defined as the percentage change in the CCPI over a year. There are two commonly used measures of inflation: Year-on-Year or Point-to-Point inflation, which reflects the percentage change in the CPI over the last 12 months, and Moving Average Inflation, which is the percentage difference between the average Price Index of the last 12 months and the average Price Index of the previous 12 months.
