Inflation in Sri Lanka hits 58.9% in June 2022

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI) increased to 58.9% in June 2022 from 45.3% in May 2022, according to the Central Bank of Sri Lanka.

This increase in Y-o-Y inflation was driven by the monthly increases of 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 Non-Food 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.