August inflation rises to 3.4%

Headline inflation as measured by the year-on-year change in the National Consumer Price Index (NCPI, 2013=100)1 increased to 3.4% in August from 2.2% in July, the Central Bank said yesterday.  

The low base that prevailed in the corresponding month of the previous year and the monthly increases of prices of items in both Food and Non-Food categories contributed to this increase. Meanwhile, in August, year-on-year Food and Non-food inflation recorded 0.6% and 5.65 respectively.

The change in the NCPI measured on an annual average basis increased marginally to 2% in August from 1.9% in July.

Monthly change of NCPI recorded 0.2% in August and it was due to the price increases observed in the items of both Food and Non-Food categories.

Within the Food category, prices of banana, rice and fresh fish recorded increases. Moreover, within the Non-Food category, prices of the items in Transport; Alcoholic Beverages, Tobacco and Narcotics; and Clothing and Footwear subcategories increased during the month. 

The core inflation, which reflects the underlying inflation in the economy, declined to 5.9% in August from 6.1% in July on year-on-year basis. However, annual average core inflation increased to 5% in August from 4.7% in July.