THE Bureau of Statistics reports an increase in general inflation, which increased to 9.04 per cent in April after it had eased to 8.71 per cent in March. The easing of inflation in March happened after an upward trend that had continued for five months since October 2025. The national statistical office says that food inflation increased in April to 8.39 per cent, up from 8.24 per cent in March, and non-food inflation increased in April to 9.95 per cent, up from 9 per cent in March. The statistical office records the 12-month average of inflation at 8.50 per cent in April, much to the consternation of consumers, already faced with high inflation since November 2022. It says that the pressure of inflation was different on rural and urban consumers. Urban areas have faced higher food inflation whilst rural areas faced higher non-food inflation. But economists say that there is no respite for fixed-, low- and lower middle-income groups in either urban or rural areas as wage growth has lagged behind inflation for about 50 months until April. The proposition has left many to depend on their savings or take out loans. Experts also say that the situation suggests a lower economic growth and a higher poverty rate.
Experts view that the April 18 increase in fuel prices by 15–16 per cent, which is cited as a reason for the increase in inflation, would further affect almost everything from agricultural output to industrial production. A World Bank report released in November 2025 said that about 62 million people, accounting for a third of the population, could fall back into poverty if they face illness, natural disasters or any other unexpected shocks. Given the increase in fuel prices caused by disruption in supply because of the US-Israel war on Iran and its effect on the Middle East, experts observe that there is no scope for the easing of inflationary pressure in the coming months. People, especially the fixed-, low- and lower middle-income groups, would need to brace for further hardship as the Power Development Board has submitted a proposal to the Energy Regulatory Commission, seeking an increase in power tariffs both for retail and bulk consumption. The increase in power prices, if implemented, would further increase the inflation rate. In such a situation, economists say that it has become imperative for the government to step up safeguards, especially for vulnerable groups. They view that support by way of subsidised food through the state-owned trading agency should be increased and the coverage should be widened.
Whilst the government should try to minimise the impact of inflation on people, it should also step up food aid and consider cash assistance to protect the poor and low-income groups.
