Colombo inflation accelerates 2.7-pct in February

Feb 29, 2016 (LBO) – Consumer prices in Sri Lanka’s capital Colombo has accelerated 2.7 percent in February 2016 from a year earlier, up from 0.9 percent in January 2016 with the inflation index dropping 0.6 percent in the month, the state statistics office said. As per the statistics office, this increase was mainly due to elimination of effect of price reduction of few essential food items, L. P. Gas, Kerosene Oil, Petrol, Diesel and Bus Fare implemented by the Government in February 2015. Year on year inflation of Food Group has increased from -0.2 percent in January 2016 to 0.8 percent in February 2016 while Non-food Group increased by 2.0 percent to 4.6 percent during this period. For the month of February 2016, on year to year basis, contribution to inflation by food commodities was 0.42 percent. Contribution of Non food items was 2.34 percent. This was mainly due to value change increases in groups of Clothing and Footwear (0.50%), Health (0.80%), Education (0.23%), Housing, Water, Electricity, Gas & Other Fuels (0.16%), Furnishing HH Equipments & Routine HH Maintenance (0.29%) and Transport (0.17%). The CCPI for all items for the month of February 2016 was 183.8 recording a decrease of 1.1 index points or a percentage of -0.56 compared to the month of January 2016 for which the index was 184.9.