Consumer price inflation climbs to 2.4%

The overall rate of inflation as measured by the Colombo Consumer Price Index (CCPI) on a Year-on-Year basis has increased to 2.4% in July 2024, compared to 1.7%% in June 2024, according to the Department of Census and Statistics.

The CCPI for all items for July 2024 was 194.7, and it records a decrease of 0.9 index points or 0.44 percent compared to June 2024, for which the index was 195.6. This represents a decrease in expenditure value by Rs. 788.98 in the “Market Basket.”

As measured by the CCPI on a Y-on-Y basis, the overall inflation rate was 2.4% in July 2024, and the Y-on-Y inflation calculated for June 2024 was 1.7%.

The Y-on-Y inflation of the Food Group increased to 1.5% in July 2024 from 1.4% in June 2024 and the Y-on-Y inflation of the Food Group increased to 2.8% in July 2024 from 1.8% in June 2024.

The report said that the month-on-month change was contributed by an increase in Food items by 0.03% and a decrease in Non-Food items by 0.47%, respectively.

The CCPI is an economic indicator constructed to measure inflation, defined as the percentage change in CCPI over the year.

There are two measures of inflation in general use. One measure is Year-on-year base or Point-to-point inflation (The percentage change in the CPI during the last 12 months).

The other measure is Moving Average Inflation (The percentage difference between the average Price Index of the last 12 months & the average Price Index of the previous 12 months).