Vegetable prices surge in Sri Lanka driving inflation higher

The cost of vegetables has risen sharply, contributing to an overall increase in inflation. Official data indicate significant price hikes for various vegetables in both wholesale and retail markets.

In retail, the price of beans has increased from Rs. 550.00 to Rs. 650.00, and in Dambulla, from Rs. 545.00 to Rs. 650.00. Carrots in Pettah now cost Rs. 450.00, up from Rs. 300.00, and in Dambulla, the price has risen from Rs. 355.00 to Rs. 420.00. Beans in Narahenpita are now priced at Rs. 800.00, while tomatoes in Pettah have increased from Rs. 240.00 to Rs. 280.00, and in Dambulla, from Rs. 255.00 to Rs. 520.00.

Supermarket prices have also seen a rise. Lime now costs Rs. 3,820.00 per kg, green chillies have jumped from Rs. 550.00 to Rs. 700.00 per kg, ginger has surged to Rs. 4,860.00 per kg, carrots are Rs. 620.00 per kg, potatoes are Rs. 530.00 per kg, capsicum is Rs. 980.00 per kg, and green beans are Rs. 780.00 per kg.

Wholesalers and retailers at Economic Centres attribute the price hikes to recent rainy conditions and low supply, which have adversely affected crop yields. They warn that prices may continue to rise unless supply conditions improve.

The Department of Census and Statistics reported that the overall rate of inflation increased to 2.4% in June 2024, up from 1.6% in May 2024. Food inflation saw a notable rise, reaching 1.9% in June 2024, compared to 0.5% in May 2024. The Year-on-Year inflation rate for the non-food group also climbed, reaching 2.7% in June 2024, up from 2.4% in the previous month.

Food commodities contributed 0.85% to inflation in June 2024, compared to the same month in 2023.