Saturday, 30 January 2021 21:17

Sri Lanka’s inflation dips as food prices soar

Sri Lanka’s inflation measured by Colombo Consumer Price Index decreased to 3 percent from 4.2 percent in December last year due drop in prices in both Food and Non-food categories , Central Bank announced.


But the reality was Sri Lanka’s soaring food prices at present due to bad weather and intermediaries, and they will come down in time for April New Year, market sources revealed.

“It is well-known that vegetable prices were going up rapidly in the last few months,” a spokesman of traders association in Colombo said.

“The main reason for this was the climate situation which resulted in excess rain in both upcountry and low country regions simultaneously, he added.”

Headline inflation, as measured by the year-on year (Y-o-Y) change in the Colombo Consumer Price Index decreased to 3.0 per cent in January 2021 from 4.2 per cent in December 2020, Central Bank claimed.
This was due to the statistical effect of the high base prevailed during January 2020. Meanwhile, Food inflation (Y-o-Y) decreased to 6.8 per cent in January 2021 from 9.2 per cent in December 2020.
Further, Nonfood inflation (Y-o-Y) decreased to 1.4 per cent in January 2021 from 2.0 per cent in December 2020. T
The change in the CCPI measured on an annual average basis decreased to 4.3 per cent in January 2021 from 4.6 per cent in December 2020.

(LIN)

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