CB says inflation up due to petroleum and bus fare hike

The year-on-year inflation as measured by the Colombo Consumers’ Price Index (CCPI) (2006/07=100), computed by the Department of Census and Statistics increased to 5.5% as anticipated, mainly due to the upward adjustment of petroleum prices, electricity charges and bus fares.

However, the annual average inflation decreased marginally to 5.9% in March from 6.1% in February 2012, for the sixth successive month. Meanwhile, the annual average core inflation decelerated further for the sixth consecutive month to 6.5% in March 2012, while core inflation measured on a year-on-year basis increased marginally to 4.9% compared to 4.7% in the previous month.

The general price level as indicated by the monthly index recorded an increase of 2.2% in March 2012 over that of the previous month, with the Index increasing in absolute terms to 158.8 from 155.4. The contribution to the monthly increase in the Index came from price increases in the non-food items (4.0%), mainly due to the revision in the petroleum prices, bus fares and adjustment in charges on electricity, effected in mid February 2012.

Prices in the food sub category increased marginally by 0.1%. Within the food sub category, the prices of almost all major food items such as rice, vegetables, green chillies, most varieties of fresh fish, big onion, red onion, potato, eggs and chicken declined due to improvements in supply while those of fruits, sugar and dhal moved up due to seasonal and other factors.

Prices in the sub category of housing, water, electricity, gas and other fuels increased by 4.3% due to the upward revision in the price of kerosene and fuel adjustment charge on electricity while prices in the transport sub category increased by 9.6% mainly due to the price increases in petrol, diesel and bus fares. Meanwhile, price increases were also registered in the sub categories of clothing and footwear (1.3%); furnishing, household equipment and routine household maintenance (0.1%); and Miscellaneous goods and services (0.1%). However, health, communication, recreation and culture and education sub categories remained unchanged during the month.