Inflation in February 2012 drops to 2.7 percent,
Inflation, as measured by the Colombo Consumers' Price Index (CCPI)
(2006/07=100) computed by the Department of Census and Statistics,
decreased on a year-on-year basis (YoY) from 3.8 per cent in January
2012 to 2.7 per cent in February, which is the lowest rate since January
2010.
The annual average inflation also decreased to 6.1 per cent in
February from 6.5 per cent in the previous month, for the fifth
consecutive month. In addition, the annual average core inflation
continued to decrease to 6.6 per cent as compared to that of January
2012, while the core inflation on an YoY basis remained at 4.7 per cent
in February 2012.
Meanwhile, the general price level as indicated by the monthly index
recorded a marginal increase of 0.4 per cent in February 2012 over that
of the previous month, with the Index increasing in absolute terms to
155.4 from 154.8. The increase in the Index was entirely due to the
upward price revision of petrol, diesel and kerosene, bus fares and
surcharge on electricity bill in mid February 2012 which had a partial
impact on the CCPI. Though the sub indices of the Transport (4.6 per
cent); and Housing, water, electricity, gas and other fuels (1.8 per
cent) increased during the month, the impact on the index was off-set by
the substantial decrease in the Food sub index.
Improved domestic supply mainly contributed to decrease the sub
category of Food and nonalcoholic beverages by 1.3 per cent. More
specifically, decline in prices of most varieties of vegetables and
fish, rice, red onion, big onion, potato, eggs, limes and green chillies
contributed towards the decrease in the sub index. Further, prices in
the sub categories of Clothing and footwear (0.9 per cent); Furnishing,
household equipment and routine household maintenance (0.2 per cent);
Recreation and culture (0.3 per cent); and Miscellaneous goods and
services (0.2 per cent) increased during the month. However, Health,
Communication and Education sub categories remained unchanged during the
month.
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