Fiona Remnant and Shivapragasam Shivakumaran begin by giving readers a brief introduction of the Colombo Consumer Price Index (CCPI) and its functions. However, economic analysts argue that a new CPI is needed due to inherent limitations such as representation of population, geographical coverage, the basket of items and the weight of these items. The revised CCPI(N) was introduced in 2002 snd represents more up to date consumer patterns for a larger sample size. However, issues were brought up as to whether the CCPI(N) was sufficiently representing the impact of inflation on the poorest groups in society as the CCPI(N) requires data from all socio-economic groups (in order to create an overall average).The concern over the calculation of cost of living allowance based on CCPI(N) and CCPI are also emphasized. The article is concluded with the fact that whether we use the old CCPI or the new CCPI the overall picture of recent inflation will be the same.