BY Paneetha Ameresekere
Food inflation in Colombo passed the 30 per cent mark for the first time after 13 years and seven months accelerating for the sixth consecutive month to 30.2 per cent last month, as per Census and Statistics Department (CSD) data released yesterday.
The last occasion when the food inflation hit the 30 per cent mark was in August 2008 with a figure of 32.1 per cent. Coincidentally, it was at the height of the 26-year-old war.
August 2008 was also the eve of the global financial crisis which was fully blown in September 2008 with the collapse of Lehman Brothers; a U.S. based financial services company, corresponding with the Great Recession which lasted till 2009.
Meanwhile, food inflation has been in double digits for the past six months to last month, while being at over 20 per cent for three consecutive months to February 2022.
Consequently, overall inflation in Colombo accelerated to a 13 years and five months high of 18.7 per cent last month, while non-food inflation rose to a 13 years and three months high of 13.4 per cent. The last time overall inflation and non-food inflation achieved higher figures than last month was in October 2008 and December 2008 with figures of 20.2 and 13.6 per cent, respectively.