29 April 2023 05:50 am Views - 2723
The Colombo district inflation fell sharply in April, as the higher base effects from last year kicked in while the commodities prices are cooling, on the back of easing supply conditions and the relative strength in the rupee, which reduced the prices of imported goods.
Inflation, measured by the mostly-watched Colombo Consumer Price Index (CCPI), slowed to 35.3 percent in the 12 months to April 2023, from 50.3 percent through March, reaching what could be termed as the next stage of inflation for the nation, which was battered by runaway prices for almost a year.
Measured on a monthly basis, the prices dropped 1.4 percent in April, after rising 2.9 percent in March.
April inflation also marked the lowest inflation since May, last year.
Inflation skyrocketed from April last year when the Central Bank floated the rupee, causing it to lose 80 percent of its value since then, sending the prices of goods and services through the roof. The rising global energy and other commodities prices too added to the woes last year, on the back of the invasion of Ukraine by Russia
in February.
However, global commodities prices have mostly turned around and are on an easing path, even amid the raging war between Russia
and Ukraine.
Meanwhile, food prices cooled sharply to 30.6 percent in April, from 47.6 percent in March. The monthly food prices continued to decline for the third consecutive month, falling by 0.1 percent in April.
The stickier non-food prices also eased to 37.6 percent in April, from 51.7 percent in March, as transport costs and other utilities costs eased. The monthly non-food prices also declined by 2.0 percent, marking the first monthly decline in five months.
Meanwhile, the so-called core prices, barring often-volatile items such as food, energy and transport, rose by 27.8 percent in the 12 months, from 39.1 percent through March, further indicating that the underlying price pressures in the economy are gradually dissipating.