Inflation drops in February
Inflation, as measured by the year-on-year (YoY) change in the
Colombo Consumers' Price Index (CCPI) (2006/07=100), computed by the
Department of Census and Statistics, declined further to 4.2 percent in
February 2014, from 4.4 percent in January 2014.
 This is the fourth consecutive month in which inflation fell
continuously from high of 6.7 percent in October 2013. Annual average
inflation, which followed a same declining trend since June 2013,
moderated further to 6.0 percent in February 2014, from 6.5 percent in
January 2014 .
Deceleration of inflation in February 2014 was mainly attributed to
the moderate increase in the price index over the previous month and the
base effect.
Within the food category, the price declines were recorded in red
onion, big onion, potatoes, eggs and most varieties of vegetables.
However, prices of rice, coconut, chicken, milk powder, fish and fruits
recorded increases.
In the Non-food category, prices in the Housing, Water, Electricity,
Gas and Other Fuels sub-category recorded a decline in February 2014.
The prices in the sub categories of Communication, Recreation and
Culture, and Education remained unchanged during the month. However,
price increases were reported in the sub-categories of Furnishing,
Household Equipment and Routine Household Maintenance (0.8 percent);
Miscellaneous Goods and Services (0.6 percent); Clothing and Footwear
(0.1 percent); Health (0.1 percent); and Transport (0.1 percent) in
February 2014, compared to the previous month.
Core inflation continued its declining trend, reflecting the
effectiveness of monetary policy measures implemented by the Central
Bank.
Core inflation on both annual average and YoY basis decelerated to
3.8 percent and 3.1 percent in February 2014 from 4.1 percent and 3.5
percent in January 2014. |
