Reversing from its declining trend, the headline inflation as measured by the Year on Year (YoY) change in the National Consumer Price Index (NCPI), has recorded an increase of 1 per cent in November inflation, the Department of Census and Statistics data shows.
This sudden rise of inflation has been mainly driven by the increase of the prices of food items. YoY inflation in food items increased to -3.9 per cent in November 2018 compared to -6.6 per cent in October 2018. However, year-on-year non-food inflation decreased from 5.8 per cent in October 2018 to 5.2 per in November 2018.
The month on month change of the NCPI increased by 2.2 per cent in November 2018 due to increases in the prices of items in the Food category, particularly those of vegetables, green chillies, rice, limes, potatoes, big onions, red onions, eggs, coconuts, bread fruit, chilli powder, tea dust/ leaves, jak and jak seeds, manioc and wheat flour. Meanwhile, fresh fish, chicken, banana, papaw, sugar, mangoes, dried fish, coconut oil, pineapple and pepper were reported for decreases in expenditure value in the index.
In the non-Food category, health, recreation and culture, miscellaneous goods and services, furnishings, household equipment and routing household maintenance, restaurants and hotels, housing, water, electricity, gas and other fuels, clothing and footwear showed an increase in the expenditure value. However, communication, alcoholic beverages, tobacco and narcotics and transport has recorded a decrease in the expenditure value under the same category. Expenditure value of education has remained unchanged during the month.
November, last year showed a 8.4 per cent YoY inflation rate and it showed a continuous decrease up to November 2018, with a 1 per cent inflation increase.