May inflation slows to 7.1%

Thursday, 22 June 2017 00:10 - - {{hitsCtrl.values.hits}}

May inflation decreased to 7.1% in May 2017 from 8.4% in April 2017, according to the National Consumer Price Index (NCPI), calculated by the Census and Statistics Department.

Contributions to the inflation from food group and non-food group in May 2017 are 4.6% and 2.5% respectively, whereas contributions of these two groups to the inflation in May 2016 were 2.1% and 3.1% respectively, the department said in a release yesterday.

However, when compared to month on month changes of NCPI in May 2017 has increased to 121.8 from 121.0 reported for April 2017. This shows an increase of 0.8 index points or 0.7 percentage points in May 2017 compared to previous month; April 2017. This monthly change was due to the increases of expenditure value of food items by 0.43% and non-food items by 0.21% respectively.

The increase in expenditure value of food items was due to the price increases in vegetables, red onions, fresh fish, rice, coconuts, dried fish, garlic and potatoes. However, decreases in expenditure value in index were reported for banana, papaw, eggs, sugar and pineapple.

The increase in expenditure value of non-food items in May 2017 compared to the previous month was due to the expenditure value increases in groups of ‘Miscellaneous Goods and Services’, ‘Transport’, ‘Housing, Water, Electricity, Gas and Other fuels’, ‘Furnishing, Household equipment and Routine household maintenance’ and ‘Clothing and Footwear’.

Further, very slight increases in expenditure value were reported for groups of ‘Health’, ‘Education’ and ‘Restaurant and Hotels’ compared to the preceding month. However, decrease in expenditure value was reported for non-food commodity group of ‘Alcoholic Beverages, Tobacco and Narcotics’ compared to the previous month. The expenditure value of ‘Communication’ and ‘Recreation and Culture’ groups remained unchanged during the month.