Sri Lanka’s Inflation Rate Drops to 0.5% in August 2024
August 31, Colombo (LNW): The overall inflation rate in Sri Lanka, as measured by the Colombo Consumers Price Index (CCPI) on a year-on-year (Y-on-Y) basis, has decreased significantly to 0.5% in August 2024, down from 2.4% in July 2024, according to the latest data from the Department of Census and Statistics.
The CCPI for all items in August 2024 stood at 191.1, marking a decrease of 3.6 index points (or 1.85%) compared to 194.7 in July 2024. This decline represents a reduction in the expenditure value by Rs. 3,304.55 in the “Market Basket.”
The month-on-month change in the CCPI from July to August 2024 reflects a decrease of 0.64% in food items and 1.21% in non-food items.
The inflation rate for the Food Group on a Y-on-Y basis decreased to 0.8% in August 2024 from 1.5% in July 2024, while the inflation rate for the Non-Food Group dropped to 0.4% in August 2024 from 2.8% in July 2024. For August 2024, the contribution to inflation from food commodities was 0.25%.
The CCPI is an economic indicator used to measure inflation, defined as the percentage change in the index over a year. Two measures of inflation are typically used: Year-on-Year (Point to Point) Inflation, which calculates the percentage change in the CPI over the past 12 months, and Moving Average Inflation, which measures the percentage difference between the average price index of the last 12 months and that of the previous 12 months.
