Nationwide prices in July unchanged at 6.3%; core inflation slightly up

Inflation, as measured by the change in the National Consumer Price Index (NCPI), which is compiled by the Census and Statistics Department, remained unchanged from the previous month at 6.3 percent in July 2017, on a year-on-year (YoY) basis. 

Both Food and Non-Food categories contributed towards the YoY inflation in July 2017.

The change in the NCPI measured on an annual average basis increased marginally from 6.1 percent in June 2017 to 6.2 percent in July 2017.

When the monthly change is considered, the NCPI decreased from 123.4 index points in June 2017 to 122.4 index points in July 2017. This monthly decrease was mainly due to the decrease in prices of the items in the Food category. 

Within the Food category, the prices of coconuts, vegetables, fresh fish, green chillies, garlic and red onions decreased during the month.

In the Non-Food category, the prices of items in the Health sub-category recorded a decrease during the month. The prices in the Clothing and Footwear; Furnishing, Household Equipment and Routine Household Maintenance; Transport (Bus Fares) and Miscellaneous Goods and Services subcategories increased. The Alcoholic Beverages and Tobacco (areca nuts) sub-category also increased during July 2017. 

Meanwhile, the prices in the Housing, Water, Electricity, Gas and Other Fuels; Communication; Recreation and Culture; Education; 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 4.2 percent in July 2017 from 4.1 percent in June 2017 on a YoY basis. The annual average NCPI core inflation declined from 6.1 percent in June 2017 to 5.9 percent in July 2017.