Inflation up
The annual average inflation, as measured by the Colombo Consumers'
Price Index (CCPI) (2002=100), computed by the Department of Census and
Statistics, increased marginally to 6.1 percent in February from 6.0
percent in January, 2011.
However, on a year-on-year basis, inflation increased to 7.8 percent
as anticipated, mainly due to the increase in prices of the most
varieties of vegetables, coconut, coconut oil, red onions and rice
primarily owing to both crop destruction and transport dislocations that
occurred due to the flood situation that prevailed in major food
producing areas, Central Bank press release said yesterday.
Meanwhile, the core inflation, both in terms of year-on-year and
annual average bases decelerated further to 2.9 percent and 5.5 percent,
respectively, in February 2011 compared to 3.6 percent and 6.0 percent
in the previous month.
The contribution to the monthly increase of 1.2 percent in the Index
came mainly from price increases in the sub category of Food and
non-alcoholic beverages (2.1 percent). Within the Food sub category,
price increases were registered for vegetables, rice, coconut, coconut
oil, red onions and green chillies owing mainly to supply shortages
resulting from heavy rains and floods. Price upsurges in major
agricultural commodities are expected to be temporary with prices
returning to normal levels once supplies resume as seen towards the end
of February.
However, prices of big onions, potatoes and some varieties of fish
declined. Further, price increases were recorded in the sub categories
of Clothing and footwear (1.3 percent); Furnishing, household equipment
and routine household maintenance (0.5 percent); Health (0.2 percent);
Transport (0.2 percent); Housing, water, electricity, gas and other
fuels (0.1 percent); Education (0.02 percent); and Miscellaneous goods
and services (0.1 percent).
Meanwhile, prices in the sub categories of Recreation and Culture and
Communication remained unchanged during the month. |