Consumer prices in Colombo exhibited a moderated increase in February compared to the previous month, hinting at a slight alleviation in the cost of living, according to data from the Department of Census and Statistics (DCS).
The Colombo Consumer Price Index (CCPI) reported a year-on-year inflation rate of 5.9 percent in February, marking a decrease from 6.4 percent in January. This downturn follows two consecutive months of expansion in December 2023 and January 2024, aligning closely with the projections of the Central Bank of Sri Lanka (CBSL).
The CCPI for all items in February stood at 200.6, reflecting a marginal decrease of 0.1 index points compared to the previous month, equivalent to a 0.05 percentage change compared to January. The DCS noted that this reduction translates to a decrease in expenditure value by Rs. 92.52 in the 'market basket'.
In the food group, year-on-year inflation increased to 3.5 percent from 3.3 percent in January, while the non-food group witnessed a decrease in year-on-year inflation to 7 percent in February from 7.9 percent in January.
Contributing to inflation in February, food commodities accounted for 1.13 percent, whereas non-food items contributed 4.74 percent. Within the food category, prices of items such as egg, yogurt, rice, and fresh milk rose, while values for fresh fish, onions, vegetables, and fruit decreased. In the non-food group, price surges were noted in 'housing, water, electricity and gas', 'education', and 'alcoholic beverages, tobacco and narcotics' among others, while decreases were observed in 'furnishing household equipment and routine household maintenance' and 'transport'.
The Central Bank anticipated that inflation would persist above the target in the near term, primarily driven by recent tax adjustments, but is expected to stabilize around the targeted level of 5 percent over time, supported by well-anchored inflation expectations and appropriate policy measures.
The CCPI, compiled to indicate average changes in prices of goods and services purchased by households in urban areas of the Colombo district, is based on a 2021 index. Price collection for the index covers 10 collection centers, including Peliyagoda, Maradana, Wellawatte, and others across the district.
