Inflation hike in October

November 22, 2019, 9:19 pm

Headline inflation as measured by the year-on-year change in the National Consumer Price Index (NCPI, 2013=100)1 increased to 5.6 per cent in October 2019 from 5.0 per cent in September 2019. The monthly increases of prices of items in the Food category contributed to this increase.

Accordingly, Food inflation (Y-o-Y) increased to 7.3 per cent in October 2019 from 4.9 per cent in September 2019. However, Non-food inflation (Y-o-Y) recorded 4.3 per cent, continuing its decreasing trend observed since May2019.

The change in the NCPI measured on an annual average basis increased to 2.8 per cent in October 2019 from 2.3 per cent in September 2019.

Monthly change of NCPI recorded 1.0 per cent in October 2019 and it was solely due to the price increases observed in the items of Food category. Within the Food category, prices of big onions, rice and vegetables recorded increases. Meanwhile, prices of items in the Non-Food category declined during the month owing to price decreases of the items in Housing, Water, Electricity, Gas and other Fuels; Transport; and Health sub-categories.

The core inflation, which reflects the underlying inflation in the economy, remained unchanged at 5.6 per cent in October 2019 on year-on-year basis. However, annual average core inflation increased to 5.4 per cent in October 2019 from 5.2 per cent in September 2019. (CBSL)