Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100) was recorded at 2.4 percent in July 2024.
Inflation continued to remain below the targeted level of 5 percent even after this acceleration.
Food inflation (Y-o-Y) accelerated marginally to 1.5% in July 2024 from 1.4% in June 2024. Further, Non- Food inflation (Y-o-Y) also accelerated to 2.8% in July 2024 from 1.8% in June 2024.
On a month-on-month basis, the CCPI recorded a decline of 0.44 percent in July 2024 due to the combined effect of price increases of 0.03 percent observed in the items of the Food category and the price decreases of 0.47 percent observed in the items of the Non-Food category.
Meanwhile, core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, remained unchanged at 4.4 percent in July 2024.
Inflation is projected to remain below the target of 5 percent in the near term.
Over the medium term, inflation is expected to gradually align with and remain around the targeted level, aided by appropriate policy measures.