Colombo inflation hits 13-year high to 15.1% in Feb.

• Core inflation up by 10.9%, from 9.9% in Jan.
• Food prices surge 25.7%; non-food by 10.1%

Colombo inflation hit a new 13-year high in February from a year ago but the prices measured on a monthly basis showed a deceleration, pointing to easing of prices in the months to come. 

However, the downside risks remain elevated after Russia invaded Ukraine last week, pushing global oil and gas prices to fresh highs. 

According to the Colombo Consumer Price Index compiled by the Census and Statistics Department, Colombo prices climbed by 15.1 percent in the 12 months to February, accelerating from 14.2 percent in the preceding 12 months through January. 

However, the month-on-month prices decelerated 1.1 percent in February 2022, from 2.4 percent in January and 2.7 percent in December 2021.

Monthly price data was the only positive indicator in the February inflation report, which could provide some relief to both consumer as well as to policymakers, who are struggling to ease the cost of living burden on the people. 
Meanwhile, the core inflation, measured barring often-volatile items such as food, energy and transport, rose by 10.9 percent in the 12 months to February, accelerating from 9.9 percent 
in January. 

Food prices rose by 25.7 percent in the 12 months to February, accelerating from 25.0 percent in January but the monthly prices decelerated to 1.3 percent, from 3.3 percent 
in January. 

Except for a few items such as chicken, sea fish, eggs, vegetables, green chillies, turmeric powder and lime, all else rose in prices during February from their January levels. 

Meanwhile, the non-food inflation, which captures the energy and transportation sub-categories among others, rose by 10.1 percent in the 12 months to February, from 9.2 percent. However, the month-on- month prices decelerated to 0.9 percent, from 1.9 percent in January.