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Inflation in March 2017

central bank logoInflation, as measured by the change in the National Consumer Price Index (NCPI)(2013=100), which is compiled by the Department of Census and Statistics, increased to 8.6 percent in March 2017 from 8.2 per cent in February 2017, on year-on-year basis.
 
 
 
Both Food and Non-food categories contributed towards the year-on-year inflation in March 2017. The increase in year-on-year inflation in March 2017 is due to the low base that prevailed in the corresponding period of the previous year.
 
 
The change in the NCPI measured on an annual average basis increased to 5.6 per cent in March 2017 from 5.1 per cent in February 2017.
 
 
When the monthly change is considered, the NCPI decreased from 119.9 index points in February 2017 to 119.5 index points in March 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 rice, limes, bananas, potatoes, green chillies and Mysore dhal decreased during the month. Meanwhile, prices of coconuts, vegetables, some fruits, coconut oil and sugar increased during the month. In the Non-food category, prices of items in Clothing and Footwear; Furnishing, Household Equipment and Routine Household Maintenance and Miscellaneous Goods and Services subcategories increased. Prices of certain items within the Alcoholic Beverages and Tobacco subcategory decreased during March 2017. Meanwhile, prices in Housing, Water, Electricity, Gas and Other Fuels; Health; Transport; Communication; Recreation and Culture; Education; and Restaurants and Hotels remained unchanged during the month.
 
 
The NCPI Core inflation, which reflects the underlying inflation in the economy decreased marginally to 7.0 per cent in March 2017 from 7.1 per cent in February 2017. Annual average NCPI Core inflation increased to 6.6 per cent in March 2017 from 6.4 per cent in February 2017.
 
 

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