June inflation put at 6.3% up from 5.2% in May

Headline inflation as measured by the year-on-year (YoY) change in the National Consumer Price Index (NCPI) increased to 6.3% in June from 5.2% in May 2020. 

Core inflation, which reflects the underlying inflation by excluding volatile items of food, energy and transport groups in the economy, as measured by the YoY change based on NCPI in June has also increased to 4.4% from 3.7% in May 2020.

Census and Statistics Department said headline inflation was driven by monthly increase of prices of items in both Food and Non-food categories. Food inflation (YoY) increased substantially to 13.6% in June from 11.1% in May, while that of non-food inflation (YoY) remained unchanged at 0.8% during the month.

The change in the NCPI measured on an annual average basis increased marginally to 5.6% in June from 5.2% in May 2020. Monthly change of NCPI increased to 1.4% in June from 0.4% in May mainly due to increases observed in prices of items in the food category. 

Within the food category, increases were observed mainly in the prices of vegetables, sugar, fresh fish, eggs, rice, turmeric powder, chicken, potatoes, coconut oil, limes, Mysore dhal, fresh fruits, biscuits, coconuts, green gram, papadam, cowpea and canned fish. However, decreases in index values were reported for garlic, dried fish, dried chilies, bread fruit, chili powder, and curry powder.

The non-food category in June 2020 also saw increases in groups of items ‘Clothing and Footwear’, ‘Health’, ‘Transport’ (Purchase of vehicles) and ‘Restaurants and Hotels’. However, price decreases in groups of items were reported for ‘Alcoholic Beverages, Tobacco & Narcotics’ (betel leaves) and ‘Housing, Water, Electricity, Gas and Other fuels’ (material for maintenance). Further, very slight price increases were reported in group of ‘Furnishing, Household equipment and Routine household maintenance’ and very slight price decreases were reported in groups of ‘Recreation and Culture’ and ‘Miscellaneous Goods and Services’ compared to the preceding month. The price indices of ‘Communication’ and ‘Education’ groups remained unchanged during the month.