Inflation up 5.8% in July

The rate of inflation, as measured by the National Consumer Price Index (NCPI), rose 5.8% in July from a year earlier, slowing for the first time in six months, the Department of Census and Statistics said on Monday. 

Point-to-point inflation hit its highest since July last year, the period from which Government data is available. It rose five straight months to hit 6.4% in June, according to the NCPI index, which was introduced in October last year with 2013 as the base year. 

The NCPI in July fell 0.8% on a month-on-month basis, compared with a rise of 2.1% in June.

The Central Bank in a statement said inflation, as measured by the change in the National Consumer Price Index (NCPI) (2013=100), which is compiled by the Department, decreased to 5.8% in July 2016 from 6.4% in June 2016, on year-on-year basis. Both the Food and Non-food categories contributed towards year-on-year inflation in July 2016.

The change in the NCPI measured on an annual average basis increased to 3.4% in July 2016 from 3.1% in June 2016.

When the monthly change in the NCPI is considered, the NCPI decreased by 0.8% from 116.1 index points in June 2016 to 115.2 index points in July 2016. This monthly decrease was mainly due to the decrease in prices of the items in the Food category. The prices of vegetables, coconut, fresh fish, sugar, limes and sprats decreased during the month. Within the Non-food category prices in the Health, Communication and Recreation and Culture sub-categories decreased during July 2016. The Furnishing, Household Equipment and Routine Household Maintenance, Transport, Restaurants and Hotels and Miscellaneous Goods and Services subcategories increased during July 2016. 

Meanwhile, prices in Alcoholic Beverages and Tobacco increased during July 2016. Nevertheless, prices in the Clothing and Footwear, Housing, Water, Electricity, Gas and Other Fuels and Education subcategories remained unchanged during the month.

The NCPI Core inflation, which reflects underlying inflation in the economy, decreased to 6.8% in July 2016 from 7.5% in June 2016, on a year-on-year basis. Annual average NCPI Core inflation increased to 5.5% in July 2016 from 5.3% in June 2016.