National consumer prices edged up in February as non-food prices climbed on the back of the increase in electricity and petrol prices, which offset the persistent decline seen in food prices. Consumer prices measured by the National Consumer Price Index rose by 53.6 percent in the twelve months to February 2022, firming up from the 53.2 percent in the period through January.
Prices measured on a monthly basis rose by 1.1 percent in February from 0.7 percent increase in January.
Overcoming massive opposition, the government managed to push through the second mega electricity tariff hike last month, with retrospective effect from the start of the year. Petrol prices were raised too, sending the transport sub-sector up.
However, it appears that administrative price changes are almost completed and fuel prices are expected to see a notable downward revision in the next couple of weeks as global oil prices have declined to the lowest levels since late 2021.
Energy Minister Kanchana Wijesekara yesterday said the fuel prices would be cut in April in response to declining global oil prices and the recent gains made by the rupee.
The non-food prices accelerated to 3.7 percent on a monthly basis and 57.4 percent on an annual basis in February from 1.1 percent and 52.9 percent in January.
Food prices continued to decelerate as monthly prices declined by 2.0 percent compared to 0.2 percent increase in January while the prices measured on an annual basis decelerated to 49.0 percent from 53.6 percent, falling below 50.0 percent levels in many months.
Meanwhile, the so-called core inflation which measured the underlying inflation in the economy decelerated to 50.1 percent in February from 52.0 percent in January.
