Headline inflation, as measured by the year-on year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100)1 , increased to 6.8 percent in July from 6.1 percent in June this year.
This was driven by the monthly increases of prices of items in both Food and Non-food categories. Accordingly, Food inflation (Y-o-Y) increased to 11.0 per cent in July 2021 from 9.8 per cent in June and Non-Food inflation (Yo-Y) increased to 3.2 per cent in July from 2.9 percent in June.
The NCPI, measured on an annual average basis, remained unchanged at 5.4 percent in July. Monthly change of NCPI recorded at 0.63 per cent in July due to increases observed in prices of items in both Food and Non-food categories. Monthly changes of Food and Non-food categories recorded at 0.37 percent and 0.27 per cent.
Within the Food category, prices of sugar, vegetables, dried fish and fresh fish increased whereas, prices of coconut and coconut oil recorded decreases. Prices of items in the Non-Food category recorded an increase mainly due to price increases observed in the Transport (petrol and diesel) and Restaurant and Hotels subcategories during the month. Year-on-year core inflation increased to 4.4 percent in July from 4.1 percent in June, while annual average core inflation remained unchanged at 4.4 percent in July.