In a welcome move, the national inflation has dipped in October, first time in 13 months a development in line with forecasts made by the Central Bank.

The Department of Census and Statistics said the overall rate of inflation as measured by the National Consumer Price Index (NCPI) on year-on-year basis was 70.6% in October. In September it was 73.7%. The annualised average increased further to 42.2%.

The Core Inflation decreased to 62.4% in October 2022 from 64.1% in September 2022.

Food inflation decreased to 80.9% in October from 85.8% in September and non-food inflation was down to 61.3% from 62.8%.

Contribution to food commodities to inflation was 38.45%. Contribution of non-food items was 32.15%.

The change in the NCPI measured on month-on-month basis continued its recent moderating trend and recorded 0.28% in October 2022. This was mainly contributed by the monthly decrease of the prices of the items in the Food category, which amounted to 0.41%.

Accordingly, within the Food category, significant decreases were observed in prices of Fresh Fish, Rice, Dry Fish and Coconut Oil.

Nevertheless, the Non-food category recorded a monthly increase of 0.69% in October 2022 due to the price increases observed in Health (Purchase of Medical/ Pharmacy Products and Payments to Private Hospitals/ Nursing Homes), Recreation and Culture (Exercise Books and Stationeries), Furnishing, Household Equipment and Routine Household Maintenance, Alcoholic Beverages

and Tobacco, and Miscellaneous Goods and Services sub-categories during the month. 

However, Transport (Petrol and Diesel) sub-category decreased in October 2022, contributing to moderate the overall monthly increase in the Non-food category to a greater extent.

Consumer confidence remains deeply pessimistic in Oct