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Inflation Based On NCPI Increased In April 2021
Posted 1,June

By Chaveendra Dunuwille

In Local News

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Headline inflation, as measured by the year on year (YOY) change in the National Consumer  Price Index (NCPI 2013 100), increased to 5.5 per cent in April 2021 from 5.1 per cent in  March 2021. This was mainly due to the statistical effect of the low base prevailed in April 2020.  Meanwhile, Food inflation (YOY) increased to 9.7 per cent in April 2021 from 8.8 per cent in  March 2021 and Non Food inflation (YOY) increased to 2.2 per cent in April 2021 from 2.0 per  cent in March 2021.

The NCPI, measured on an annual average basis, remained unchanged at 5.3 per cent in April  2021 while the Monthly change of NCPI recorded a marginal increase in April 2021. This was  due to the price increases in items of both Food and Non food categories. Accordingly, within  the Food category, increases were observed mainly in the prices of coconut oil, fresh fish and  fresh fruits during April 2021 while the prices of coconut and vegetables recorded a decrease during the month. Moreover, prices of items in the Non Food category recorded an increase  during the month due to price increases observed in Clothing and Footwear (clothing) Transport (lubricant oil) and Miscellaneous Goods and Services sub categories.

Further, year on year core inflation decreased to 4.1 per cent in April 2021 from 4.3 per cent in  March 2021, while annual average core inflation increased marginally to 4.4 per cent in April  2021 from 4.3 per cent in March 2021.