Inflation, as measured by the change in the National Consumer Price Index (NCPI) (2013=100), which is compiled by the Department of Census and Statistics, decreased to 5.8 per cent in July 2016 from 6.4 per cent in June 2016, on year-on-year basis. Both Food and Non-food categories contributed towards the year-on-year inflation in July 2016.
The change in the NCPI measured on an annual average basis increased to 3.4 per cent in July 2016 from 3.1 per cent in June 2016.
When the monthly change in the NCPI is considered, the NCPI decreased by 0.8 per cent from 116.1 index points in June 2016 to 115.2 index points in July 2016. This monthly decrease was mainly due to the decrease in prices of the items in the Food category. Prices of vegetables, coconut, fresh fish, sugar, limes and sprats decreased during the month. Within the Non-food category prices in Health; Communication; and Recreation and Culture sub-categories decreased during July 2016. Furnishing, Household Equipment and Routine Household Maintenance; Transport; Restaurants and Hotels and Miscellaneous Goods and Services sub-categories increased during July 2016. Meanwhile, prices in Alcoholic Beverages and Tobacco increased during July 2016. Nevertheless, prices in Clothing and Footwear; Housing, Water, Electricity, Gas, and Other Fuels; and Education sub-categories remained unchanged during the month.
Meanwhile, NCPI Core inflation, which reflects the underlying inflation in the economy decreased to 6.8 percent in July 2016 from 7.5 per cent in June 2016, on year-on-year basis. Annual average NCPI Core inflation increased to 5.5 per cent in July 2016 from 5.3 per cent in June 2016.
