Inflation in April increases to 5.5%

Saturday, 22 May 2021 00:46 - - {{hitsCtrl.values.hits}}

Headline inflation as measured by the year-on-year (Y-o-Y) change based on the National Consumer Price Index (NCPI) has been compiled as 5.5% for April as against 5.1% in March.

Core inflation, which reflects the underlying inflation by excluding volatile items of the Food, Energy and Transport groups in the economy, as measured by the Y-o-Y change based on NCPI for the month of April 2021, has decreased to 4.1% from 4.3% in March 2021.

The Department of Census and Statistics said contributions to the inflation rate of April from the Food group and Non-Food groups are 4.3% and 1.2%, respectively. Whilst contributions of Food and Non-Food groups to the inflation in April 2020 were 5.2% and 0.7%, respectively, resulting in headline inflation of 5.9%.

With respect to April 2020, the reported increase in the percentage of Food group was mainly due to higher price levels prevailing in the month of April, particularly prices of vegetables, rice coconuts, turmeric powder, coconut oil and Mysore dhal.

Comparing the month-on-month changes, NCPI in April has increased to 142.2 from 142.1 reported in March. This shows an increase of 0.1 index points, or 0.1%. The month-on-month change was contributed by increases of index values of Food items by 0.02% and Non-Food items by 0.06%, respectively.

Price increases of Food items were reported for coconut oil, fresh fish, fresh fruits, chicken, rice, green gram, dried fish, Mysore dhal, cowpea, sugar, gram, and chilli powder. However, decreases in index values were reported for coconuts, vegetables, big onions, red onions, green chillies, potatoes, eggs, tamarind, turmeric powder, and limes.

The increases in index values of Non-Food groups in April compared to the previous month were mainly due to the price increases in groups of items Clothing and Footwear, Furnishing, Household Equipment and Routine Household Maintenance, Transport (lubricating oil), and Miscellaneous Goods and Services. Further, a very slight price increase was reported in the group of ‘Alcoholic Beverages, Tobacco and Narcotics’ as well.

Meanwhile, the price indices of Housing, Water, Electricity, Gas and Other Fuels, Health, Communication, Recreation and Culture, Education, and Restaurants and Hotels groups remained unchanged during the month.