Inflation in May at 6.1% vs. 5.5% in April

Tuesday, 22 June 2021 01:23 - - {{hitsCtrl.values.hits}}

Headline inflation based on the National Consumer Price Index (NCPI) in May was 6.1% up from 5.5% in April.

Core inflation, which reflects the underlying inflation by excluding volatile items of Food, Energy and Transport groups in the economy in May rose to 4.2% from 4.1% in April.

The Department of Census and Statistics (DCS) said contributions to the inflation rate of May 2021 from the Food group and Non-Food groups were 4.7% and 1.4%, respectively.

Whilst contributions of Food group and Non-Food groups to inflation in May 2020 were 4.8% and 0.5%, respectively, resulting in headline inflation of 5.2%. With respect to May 2020, the reported increase in the percentage of the Food group was mainly due to higher price levels prevailed in this month of May 2021, particularly prices of rice, coconuts, vegetables, coconut oil, turmeric powder and big onions.

Comparing the month-on-month changes, NCPI in May 2021 increased to 143.6 from 142.2 reported in April 2021. This shows an increase of 1.4 index points, or 1%, as compared to April 2021. The month-on-month change was contributed by increases of index values of Food items by 0.79% and Non-Food items by 0.16%, respectively.

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

The increases in index values of Non-Food groups in May 2021 compared to the previous month was mainly due to the price increases in groups of items ‘Housing, Water, Electricity, Gas and Other Fuels’ (LP gas), ‘Furnishing, Household Equipment and Routine Household Maintenance’ and ‘Health’ (payments for medical laboratory tests and payments for private hospital room charges).

Further, DCS said very slight price increases were reported in groups of ‘Clothing and Footwear’ and ‘Miscellaneous Goods and Services’, as well. However, a very slight price decrease was reported in the ‘Alcoholic Beverages, Tobacco and Narcotics’ group compared to the preceding month. Price indices of ‘Transport’, ‘Communication’, ‘Recreation and Culture’, ‘Education’, and ‘Restaurants and Hotels’ groups remained unchanged during the month, DCS added.