22 February 2017 09:56 am
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, increased to 6.5 percent in January 2017 from 4.2 per cent in December 2016, on year-on-year (YoY) basis.
Both Food and Non-food categories contributed towards the YoY inflation in January 2017.
The change in the NCPI measured on an annual average basis increased to 4.6 percent in January 2017 from 4.0 percent in December 2016.
When the monthly change is considered, the NCPI increased from 118.0 index points to 119.3 index points from December 2016 to January 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 rice, coconuts, some fruits, coconut oil, green chilies, sugar and fresh fish increased during the month.
In the Non-food category, prices of items in Transport; Miscellaneous Goods and Services; Restaurants and Hotels; Recreation and Culture; Education; Clothing and Footwear; and Furnishing, Household Equipment and Routine Household Maintenance sub-categories increased.
Prices in Housing, Water, Electricity, Gas and Other Fuels (Kerosene oil); and Alcoholic Beverages and Tobacco decreased during January 2017. Meanwhile, prices in Health; and Communication sub-categories remained unchanged during
the month.
NCPI core inflation, which reflects the underlying inflation in the economy increased to 7.1 percent in January 2017 from 6.7 per cent in December 2016. Annual average NCPI core inflation increased to 6.2 per cent in January 2017 from 5.9 per cent in
December 2016.