September inflation hits 4.7%

Inflation in September hit 4.7%, a steep increase from just 1.9% recorded for the same period in 2015, largely driven by non-food price increases, the Census and Statistics Department said yesterday.

In a communiqué issued on the National Consumer Price Index (NCPI), the Census and Statistics Department said Year on Year inflation based on NCPI for the month of September 2016 has been calculated as 4.7%. Inflation of August 2016 was 4.5%. In September 2016 contribution to the inflation from food group and non-food group are 2.1% and 2.7% respectively.

The Department of Census and Statistics has released the NCPI for the month of September 2016. NCPI has been calculated as 113.5 for September 2016. This shows an increase of 0.2 index points or a 0.2% compared to the previous month’s (August) index of 113.3. This monthly change is due to the increase of expenditure value of food items by 0.07% and increase of expenditure value of non-food items by 0.18%.

“The expenditure value of food commodity group has increased by 0.07% in September 2016 compared to August 2016,” it said.  The increase in expenditure value of food commodity in September 2016 compared to August 2016 was due to the price increases in banana, papaw, limes, big onions, rice, coconut, mangoes, chicken, dhal-masoor, pineapple, gram and sprats (dry) compared to the previous month (August). However, decreases in value change in index were reported for vegetables, green chilies, eggs, potatoes, fresh fish and wheat flour during this period.

The expenditure value of the non-food commodity group has increased by 0.18% in September 2016 compared to August 2016. This was due to the expenditure value increases in non-food commodity groups of Alcoholic Beverages Tobacco and Narcotics; Education; Clothing and Footwear; Miscellaneous Goods and Services and Restaurant and Hotels. 

The group of Furnishing, Household Equipment and Routine Household Maintenance recorded very small value change increase compared to the previous month of August. The groups of Housing, Water, Electricity, Gas and Other Fuels; Health; Transport; Communication and Recreation and Culture remained unchanged during the month.

The expenditure value increase in Alcoholic Beverages Tobacco and Narcotics was due to price increases in areca nuts and beetle leaves during the month and the expenditure value increase in Education was due to increase in international school fees with effect from beginning of September 2016.