Inflation drops in May | Sunday Observer

Inflation drops in May

Headline inflation decreased further to 5.2 per cent in May, 2020 from 5.9 per cent in April, 2020. This was mainly driven by the statistical effect of the high base that prevailed in May 2019.

Meanwhile, Food inflation (Y-o-Y) declined to 11.1 per cent in May from 12.2 per cent in April and Non-food inflation (Y-o-Y) also declined to 0.8 per cent in May from 1.1 per cent in April.

The change in the NCPI measured on an annual average basis increased marginally to 5.2 per cent in May from 5.1 per cent in April. Monthly change of NCPI was at 0.4 percent in May mainly due to increases in prices of items in the Food category. In the Food category increases were observed mainly in the prices of vegetables, fresh fish, dhal and coconut oil during May.

However, prices of big onions and coconuts reported significant declines during the month.