Rising costs of electricity, firewood and milk tea fail to push Sri Lanka’s inflation

Feb. 18 (LBO) – Sri Lanka’s annual inflation rate for February slipped to 10.3 percent from 11.1 percent in January, despite high costs of firewood, electricity and milk tea, the Census & Statistics Department said Tuesday. The government uses the 12-month moving average – as measured by the Colombo Consumer Price Index (CCPI) – to calculate the island’s inflation and indexed wages.

Inflation measured on a 12-month point-to-point basis was flat at eight percent.

The CCPI index fell to 4290.5 in February from 4304.0 in January.

Prices of food items – which command a 60 percent share of the basket – were somewhat mixed during the month with notable declines in rice, limes, red onions, potatoes, eggs, coconut oil, fresh fish and most varieties of vegetables.

“These price decreases can be mainly attributed to more supply of locally produced agricultural consumer goods, specially the vegetables to the main markets in Colombo city,” the statement said.

However, there were notable price increases in firewood, electricity, sugar, infant milk, beef and milk tea, the department said.

Sri Lanka’s Central Bank expects year end inflation to ease to eight percent from 11.6

-LBO Newsdesk: