July inflation hits 3.4%

Headline Inflation, as measured by the change in the National Consumer Price Index, increased to 3.4% in July 2018 from 2.5% in June 2018, on a year-on-year basis, the Census and Statistics Department said. 

This was mainly driven by a low base that prevailed in the previous year as well as the monthly increase in the prices of items in the Non-food category. The change in the NCPI measured on an annual average basis decreased from 5.3% in June 2018 to 5.1% in July 2018. 

When monthly change is considered, the NCPI increased marginally from 126.5 index points in June 2018 to 126.6 index points in July 2018 largely due to the increase in the prices of the items in the Non-food category, particularly those of petrol and diesel in the Transport sub-category as well as of some items in the Miscellaneous Goods and Services subcategory. 

Meanwhile, the prices of the items in the Food category declined during the month where prominent price declines were observed with coconuts, rice and limes.

The NCPI Core inflation, which reflects the underlying inflation in the economy, increased to 2.3% in July 2018 from 1.8% in June 2018 on a year-on-year basis. Meanwhile, annual average NCPI Core inflation declined to 2.7% in July 2018 from 2.9% in June 2018.