Inflation at 3.5% in May

Headline inflation in May decreased to 3.5% from 3.6% in April due to the high base prevailed in the corresponding month of the previous year, the Central Bank said in a statement yesterday. 

Meanwhile, in May, year-on-year Food and Non-food inflation recorded -0.4% and 6.7% respectively. 

The change in the NCPI measured on an annual average basis increased marginally to 2.0% in May from 1.9% in April.

When monthly change is considered, the NCPI increased by 1.1% in May with the increases observed in the prices of the items in both Food and Non-food categories.

Within the Food category, prices of vegetables, fresh fish, limes, potatoes and milk powder recorded increases. In addition, within the Non-Food category, prices of the items in Transport; Health; and Recreation and Culture subcategories increased during the month. The core inflation, which reflects the underlying inflation in the economy, remained unchanged at 6.3% in May on year-on-year basis. However, the monthly increase of 0.3% observed in core NCPI in May was driven by increases in prices of items in the Food category, mainly in milk powder, and the Non-food category particularly in Transport (Purchase of vehicle); Recreation and Culture; and Health subcategories. Annual average NCPI Core inflation increased to 4.0% in May from 3.7% in April.