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), increased to 7.9 per cent in August 2017 from 6.3 per cent in July 2017, on year-on-year basis. Both Food and Non-food categories contributed towards the year-on-year inflation in August 2017.
The change in the NCPI measured on an annual average basis increased from 6.2 per cent in July 2017 to 6.5 per cent in August 2017.
When the monthly change is considered, the NCPI decreased from 122.4 index points in July 2017 to 122.3 index points in August 2017. This monthly decrease was mainly due to the decrease in prices of the items in the Food category. Within the Food category, prices of vegetables, red onions, garlic, fresh fish and rice decreased during the month. Meanwhile prices of big onions, some fruits, coconuts and potatoes increased during the month. Prices in Clothing and Footwear; Furnishing, Household Equipment and Routine Household Maintenance; Health (Payments to private hospitals room charges); Transport (Airline fare); Education (Vocational training course fees); and Miscellaneous Goods and Services sub-categories increased. Prices in Housing, Water, Electricity, Gas and Other Fuels and Communication sub-categories increased marginally during August 2017. Alcoholic Beverages and Tobacco (areca nuts) sub-category also increased during August 2017. Meanwhile, prices in Recreation and Culture; and Restaurants and Hotels sub-categories remained unchanged during the month.
The NCPI Core inflation, which reflects the underlying inflation in the economy increased to 4.8 per cent in August 2017 from 4.2 per cent in July 2017 on year-on-year basis. Annual average NCPI Core inflation declined from to 5.9 per cent in July 2017 to 5.8 per cent in August 2017.
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