The Year-on-Year (Y-o-Y) inflation based upon the Colombo Consumer Price Index (CCPI) reduced to 54.2% in January 2023 from 57.2% seen in December 2022, the Department of Census and Statistics reported.Meanwhile, Y-o-Y inflation of Food Group has actually dropped to 60.1% in January 2023 from 64.4% in December 2022, it stated pricing quote the latest data.According to the departments report, Y-o-Y Non-Food Group inflation decreased to 51% in January 2023 from 53.4% in December 2022.

The CCPI for all products for the month of January 2023 was 244.3 and it tape-recorded a boost of 1.1 in index points which is 0.43 percentage compared to the month of December 2022 for which the index was 243.2.

The report said that Month on Month expenditure modification was contributed by increases in Food and Non-Food classifications of 0.23% and 0.20%, respectively.Meanwhile, annual average inflation rose to 49.6% in January 2023 from 46.4% in December 2022.

The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, decreased to 45.6% in January 2023 from 47.7% in December 2022, whereas annual typical core inflation increased to 37.6% in January 2023 from 34.6% in December 2022.

The basic cost level has actually increased by 144.3% compared to the base year (2013 ).

The CCPI is a financial sign built to determine inflation which is defined as portion modification in CCPI for many years.

There are 2 procedures of inflation in basic usage.

One procedure is Year on Year base or Point to Point inflation (The portion modification in the CPI throughout the last 12 months).

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

In a declaration in this regard, the Central Bank of Sri Lanka (CBSL) stated that looking ahead, based upon its most current macroeconomic projections, the decreasing pattern of inflation is anticipated to continue through 2023, supported by suppressed demand conditions owing to tight financial and fiscal policy procedures, prepared for improvements in domestic supply conditions, and the expected passthrough of relieving worldwide energy and food costs to domestic costs, along with the favourable analytical base effect.However, there are upside risks to this disinflation course occurring from possible upward modifications in domestic energy rates and any associated second round results, delays in passing down changes of international energy and food rates to domestic customers, etc.Nevertheless, factors such as the minimized buying power of the public could soften inflationary pressures, putting in disadvantage dangers to inflation projections.

CCPI-based Inflation - 2023 ...

by Ada Derana