Inflation soars to 17.5% in Feb; food inflation higher by 25%

Tuesday, 22 March 2022 03:44 - - {{hitsCtrl.values.hits}}

Headline inflation shot up to 17.5% in February up from 16.8% in January, as the National Consumer Price Index (NCPI) went past the Colombo Consumer Price Index (CCPI) which showed inflation at 15.8% for the same month.

Listing contributions to the current inflation rate, the latest release from the Department of Census and Statistics found year-on-year food inflation at 24.7% in February, whilst the non-food group contribution was 11%.

The CCPI measures inflation in urban areas of the Colombo District, whilst the NCPI is measured compiling prices collected from all nine provinces. Accordingly, the NCPI now sitting higher than the CCPI is telling of the cost of living and price pressures weighing on average citizens around the island.

Core inflation, which reflects underlying inflation excluding volatile items of food, energy and transport increased to 14.1% in February this year, up from 12.9% in January.

Price increases of food items were reported once again for rice, Mysore dhal, milk powder, fresh fruits, coconuts, chilli powder, wheat flour, red onions, coconut oil, fresh fish, dried fish, dried chilies, chicken, curry powder, bread, sugar, and infant milk powder. Reductions were recorded in index values for vegetables, eggs, limes, green chilies, big onions and potatoes the Department of Census and Statistics said.

The increases in index values of non-food groups in February over the previous month was mainly due to price increases in items such as alcoholic beverages, tobacco and betel leaves, clothing and footwear, housing, water, electricity, gas and firewood, furnishing, household equipment and maintenance, transport costs, recreation and culture, restaurants and hotels and miscellaneous goods and services. The price indices for health, communication and education remained unchanged during the month.