Headline inflation, as measured by the year-on- year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100)1, decreased marginally to 6.7 per cent in August 2021 from 6.8 per cent in July 2021.
This decline was entirely due to the statistical effect of the high base prevailed in August 2020. Meanwhile, Food inflation (Y-o-Y) increased marginally to 11.1 per cent in August 2021 from 11.0 per cent in July 2021, while Non-Food inflation (Y-o-Y) decreased to 3.0 per cent in August 2021 from 3.2 per cent in July 2021.
The NCPI, measured on an annual average basis, increased marginally to 5.5 per cent in August 2021 from at 5.4 per cent in July 2021.
Monthly change of NCPI recorded at 0.36 per cent in August 2021 due to increases observed in prices of items in both Food and Non-food categories.
Moreover, monthly changes of Food and Non-food categories recorded at 0.25 percent and 0.11 per cent, respectively. Accordingly, within the Food category, prices of sugar, potatoes and fresh fish increased whereas, prices of rice, coconut oil and coconut recorded decreases.
Moreover, prices of items in the Non-Food category recorded an increase mainly due to price increases observed in the Alcoholic Beverages and Tobacco (Arecanuts) and Health (Payments to private hospitals/nursing homes room charges) sub-categories during the month.
Further, year-on-year core inflation increased to 4.7 per cent in August 2021 from 4.4 per cent July 2021, while annual average core inflation remained unchanged for the fifth consecutive month at 4.4 per cent in August 2021.
