Colombo prices rise by 3.9% in April; Food prices surge 9.0%

• Statistics office says collection of data was difficult due to COVID-19 disruptions 

Inflation measured by the Colombo Consumer Price Index (CCPI) for all categories of goods and services rose by 3.9 percent during the twelve months to April 2021, but the prices of food staples rose by 9.0 percent, continuing their growth to near double-digit levels for several months. 

The increase in average prices for all goods and services in April marked a deceleration from March’s 4.1 percent increase, but the Department of Census and Statistics, (DCS) citing COVID-19 disruption said that the collection of price data became extremely difficult and hence had to resort to over the phone inquiries instead of customary visits to retail stores. 

 “In particular, the collection of prices has become increasingly difficult. Issues and challenges include increased number of missing items in sampled outlets, the temporary close of retail outlets etc.” DCS said.

While the temporary missing prices were imputed using methods described in the Consumer Price Index manual, the April prices may not reflect the true picture, specially of the food varieties. 

Mirror Business last week showed that prices of rice, the main staple of the Sri Lankans, have risen by a shocking 15 percent to 30 percent during the year through April third week except in a vey few low grade varieties.

Sri Lanka could be bracing for a spike in vegetable prices in the coming couple of weeks as the farmers who came with lorry loads of packed vegetables were sent back from entering the Dambulla Economic Centre due to the discovery of a large number of cases within the centre. 

While vegetable prices showed a decline in April, the overall food prices rose by 9.0 percent over the same month in April 2020, decelerating from 9.6 percent in March. 

Among other categories of food staples, prices of rice, green gram, chicken, sea fish, coconut oil and fresh fruit rose the most during the month from March. 

Eggs, coconuts, onions, turmeric saw price declines in April from March.  

Meanwhile, non-food prices rose by 1.8 percent in the twelve months to April 2021, unchanged from March but DCS gave very little and shallow data on the sub-index values compared to their normal practice. 

People were seen spending on liquor, dining outs, leisure activities and hotel stays before the health sector fired warnings against venturing out and imposed restrictions. 

Meanwhile the so-called core inflation measured barring the often-volatile items such as food, energy and transport, rose by 3.0 percent in April from a year ago, down from 3.1 percent in March.