Inflation in April 2017

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 (DCS), decelerated to 8.4 per cent in April 2017 from 8.6 per cent in March 2017, on year-on-year basis. Both Food and Non-food categories contributed towards the year-on-year inflation in April 2017. The change in the NCPI measured on an annual average basis increased to 6.0 per cent in April 2017 from 5.6 per cent in March 2017. When the monthly change is considered, the NCPI increased from 119.5 index points in March 2017 to 121.0 index points in April 2017. This monthly increase was mainly due to the increase in prices of the items in the Food category. Within the Food category, prices of vegetables, coconuts, bananas, fresh fish, potatoes, red onions and chicken increased during the month. In the Non-food category, prices of items in Clothing and Footwear; Furnishing, Household Equipment and Routine Household Maintenance; Transport; Restaurants and Hotels and Miscellaneous Goods and Services sub-categories increased. Prices of certain items within the Alcoholic Beverages and Tobacco sub-category also increased during April 2017. Meanwhile, prices in Housing, Water, Electricity, Gas and Other Fuels; Health; Communication; Recreation and Culture and Education remained unchanged during the month. The NCPI Core inflation, which reflects the underlying inflation in the economy decreased significantly to 5.9 per cent in April 2017 from 7.0 per cent in March 2017 on a year-on-year basis. This decline is due to relatively low monthly change and base effect. Annual average NCPI Core inflation remained unchanged at 6.6 per cent in April 2017.