National inflation surges in February as food prices spike

25 March 2020 10:57 pm - 0 - {{hitsCtrl.values.hits}}

A A A

The headline inflation measured by the National Consumer Price Index (NCPI) rose by a sharp 8.1 percent in the 12 months to February 2020, from 7.6 percent in January, as the food prices spiked and the base effects kicked in. This is the highest headline national inflation recorded since 2017 November, when the price increase hit 8.4 percent. “This was driven by statistical effect of the low base prevailed in February 2019. Further, food inflation (YoY) stood at 16.3 percent in February 2020, while non-food inflation (YoY) recorded at 2.1 percent,” a statement issued by the Central Bank said. However, on a month-on-month (MoM) basis, the prices stayed flat, as the January prices too stayed elevated, starting from around December last year. The rise in national inflation in February followed a similar pattern as the Colombo Consumer Price Index (CCPI) measured inflation, which hit 6.2 percent, up from 5.7 percent in January, due to the same reasons. Despite food inflation, the prices of vegetables and rice remained muted in February, from a month ago, the statement added. As a result, the underlying inflation of the economy, as referred to as core inflation, measured barring the impacts from the food and energy, which are identified as often price-volatile items, has continued its downward trend to record a growth of 3.4 percent from a year ago, down from 3.9 percent in January. The core prices based on the CCPI inflation, a commonly used gauge by the policymakers in determining the general trajectory of prices and the setting policy rates, however showed an uptick in February, with a growth of 3.2 percent, up from 3.0 percent in January. The Monetary Board last week cut the key policy rates by 25 basis points, in the fight against the economic fallout of the coronavirus pandemic, while downplaying its forward inflation expectation. However, as people rush to buy their staples due to the prolonged curfew in a bid to stem the spread of the virus, many traders, both big and small, were found charging exorbitant prices and were openly flouting the maximum prices gazetted by the government last week, exploiting the hapless consumer at this much-needed hour. Some traders were found hiding stocks of dhal and tinned fish, which were imposed with maximum retail prices by the government.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

National inflation surges in February as food prices spike

Comments - 0

Add comment

RECOMMENDED

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Western purple-faced langurs see blue!

Most Viewed in News

A US “Kaputa”, a Lankan “Nariya” and a Presidential “Feast”

Two racing drivers arrested over Fox Hill tragedy

Street food vendor arrested for verbally harassing foreigner

Former MP Palitha Thewarapperuma dies from electrocution

Ranil Wickremesinghe caravan moves on despite barking dogs

Racing event tragedy leaves seven dead including eight-year-old child

MIRROR CRICKET

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings

TODAY'S HEADLINES

United States and SL Navy collaborate in CARAT 2024 exercise in Trincomalee

Upcountry estate workers stage a token strike

People have already selected Ranil for Presidency: Prasanna

Construction work for India-funded 10,000 housing units commenced

Sri Lanka secures third spot in South Asian Kurash Championship 2024

Athapaththu back atop ICC Women’s ODI Batting Rankings

Army forms committee to probe Diyatalawa Fox Hill Supercross accident

Indian cricket manager indicted for Legend Cricket League match-fixing allegations