Food inflation rises to 11-month high of 11.1%
By Paneetha Ameresekere
Year on year (YoY) food inflation rose to a 11-month high of 11.1 per cent in August, Census and Statistics Department (CSD) data released yesterday (21) showed.
An increase higher than this was last recorded in September 2020, when food inflation rose by 12.7 per cent, YoY that month. Last month’s increase in food inflation was helped by the cost of a family’s rice consumption rising by Rs 525.48 YoY on average, vegetables (Rs 339.30), coconut oil (Rs 241.63), coconuts (Rs 186.91), Mysore dhal (Rs 119.45) and big onions (Rs 83.08), resulting in the cost of the food basket of a family as a whole increasing by Rs 2,248.07 YoY, on average.
However non-food inflation decelerated to three per cent, aiding overall inflation to also decelerate to 6.7 per cent last month, from 6.8 per cent in July, Nonetheless, non-food inflation as a whole increased by Rs 731.90 YoY last month, impacting an average family’s expenditure basket, with the single biggest cost being transport, an increase of Rs 338.76 YoY, of which the single biggest sub-component was bus fares, with a family’s cost of bus fares rising by Rs 138.02, YoY.The next biggest increase in a family’s non-food inflation cost was ‘health,’ with health expenditure YoY increasing by Rs 128.03 last month.