Central Bank on November inflation

Inflation, as measured by the change in the National Consumer Price Index (NCPI) (2013=100), which is compiled by the Department of Census and Statistics (DCS), decreased to 8.4% in November from 8.8% in October, on year-on-year basis.

The change in the NCPI measured on an annual average basis increased from 7.1% in October 2017 to 7.5% in November.

When the monthly change is considered, the NCPI increased from 124.8 index points in October 2017 to 126.4 index points in November 2017. This monthly increase was mainly due to the increase in prices of the items in the Food category which was led by adverse supply side developments. Price increase of coconuts, green chillies and vegetables were prominent.

Nevertheless, prices of fresh fish and some fruits declined. Meanwhile, prominent price increases were observable in payments to medical laboratories and Payments to private hospitals room charges.

The NCPI Core inflation, which reflects the underlying inflation in the economy, continued to follow the declining trend exhibited since the early months of the year. As such, the NCPI Core inflation decreased to 2.8% in November from 4.1% in October on year-on-year basis. Annual average NCPI Core inflation declined from to 5.6% in October to 5.2% in November.