Colombo inflation flirts with 70% in Sept. as prices surge

1 October 2022 12:00 am Views - {{hitsCtrl.values.hits}} 6 Bookmark

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Food inflation up to 95%, from 93.7% in Aug.
Non-food inflation surges to 57.6%, from 50.2% in Aug.
Electricity and water tariff hikes, tax increases key reasons
Core inflation, which reflects underlying inflation in economy, tops 50%

Inflation in capital Colombo, as measured by the year-on-year (YoY) change in the Colombo Consumer Price Index (CCPI), rose to 69.8 percent in September, from 64.3 percent in August, as the crisis-struck nation continues to battle with exorbitant prices.

According to the government’s statistics office, both food and non-food categories drive September’s inflation.
Food inflation increased to 94.9 percent in September, from 93.7 percent in August while non-food inflation surged to 57.6 percent, from 50.2 percent.

Within the food category, increases were observed in the prices of fruits, chicken and wheat flour. However, the prices of rice, dhal and sugar decreased during the month.

Within the non-food category, increases were observed in the prices of housing, water, electricity, gas and other fuels (electricity bill, water bill and kerosene oil), restaurant and hotels, health, education (international school fees), communication (telephone charges) and miscellaneous goods and services sub-categories during the month.

Sri Lanka in mid-August materially hiked electricity and water tariffs to cut losses at state-owned utilities and as part of a broader reform programme to obtain an International Monetary Fund bailout package.

Sri Lanka also hiked taxes significantly to boost government revenue, overhauling the sweeping tax cuts that were introduced in late 2019, which according to many, was the root cause for the current unprecedented economic crisis.

Meanwhile, core inflation, which reflects the underlying inflation in the economy, increased to 50.2 percent in September, from 46.6 percent in August.

The Central Bank in August said Colombo inflation, the inflation gauge preferred by officials, may peak below 70 percent.

Comments - 6

Fathima Lai Saturday, 01 October 2022 02:52 AM

I think the govt should form a committee to investigate why the prices went so high. And, find out what is due to the economic crisis, and what is due to mere greed and take necessary action. Because people on monthly salaries can't survive at this rate. Those doing business, are managing the situation by increasing the prices of their own products and service not the salaries of employees.

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Sinna Saturday, 01 October 2022 03:44 AM

Why civil activists won’t take actions against the people who are responsible for this inflation ,everyone silently suffering, why civil vocals quiet as its fault of people, we need people to make voice against crook politicians, unqualified administrators and officers in responsible positions but not take actions to make stupid politicians aware of results

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Nilmini Welivita Saturday, 01 October 2022 05:54 AM

These are just imaginary numbers dreamt up by the opposition. There is no hyperinflation in Srilanka. We are experiencing hyper prosperity thanks to the long-sighted and prudent investment decisions by the patriotic pohottuwa government.

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Chichi the rocket man Saturday, 01 October 2022 06:14 AM

This is all propaganda by the opposition. The countrymen have never been more prosperous and happy. There is so much surplus in rice and other crops that the farmers are inviting elephants into their fields so that they don't go to waste. Most of the fishermen are holidaying in the Bahamas and other exotic places. Only the poor hard-working pohottuwa politicians are doing it tough.

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Seqi Saturday, 01 October 2022 10:52 AM

Pensions need to be index linked to rate of inflation. Banks are still only giving half rates for deposits whilst central bank skims remittances to produce a short term gain.

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Dharamasri Rama Saturday, 01 October 2022 05:00 PM

When the government paid people come and spend their money created out of nothing the value of money deteriorates. Previously the idiot Central Bank and fools around kept blaming dollar going up. All world currencies but ours have gone down in the past two weeks even, so that's not anymore a cause in the last month. The Central Bank staff themselves getting paid from printed money even adds to the inflation, but they don't want to admit their getting paid is also adding to the inflation problem. Lack of any political parties willing to speak up about continued money printing and payment made with it shows in volumes that are nation has no hope of improving for the foreseeable future.

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