March inflation hits 2.9%

• Up from 2.4% in Feb. due to increases in non-food items

Headline inflation as measured by the year-on-year change in the National Consumer Price Index (NCPI, 2013=100) increased to 2.9% in March 2019 from 2.4% in February 2019 mainly due to the low base prevailed in the corresponding month of the previous year. 

Meanwhile, in March 2019, year-on-year Food and Non-food inflation recorded -2.3% and 7.1% respectively, the Central Bank said in a statement. 

The change in the NCPI measured on an annual average basis remained unchanged at 1.7% in March 2019. When monthly change is considered, the NCPI declined by 0.2% in March 2019 with the decrease observed in the prices of the items in the Food category, particularly that of rice, coconut and vegetables. 

However, within the Non-Food category prices of the items in Alcoholic Beverages and Tobacco; Transport (petrol and diesel); Clothing and Footwear; and Miscellaneous Goods and Services subcategories increased during the month.

The core inflation, which reflects the underlying inflation in the economy, increased to 5.8% in March 2019 compared to 5.5% in February 2019 on year-on-year basis, mainly due to increase in prices of items in the Non-food category, particularly in Alcoholic Beverages and Tobacco sub-category. Annual average NCPI Core inflation also increased to 3.3% in March 2019 from 3.0% in February 2019.