Inflation down in August | Sunday Observer

Inflation down in August

26 September, 2021

Headline inflation decreased marginally to 6.7 percent in August 2021 from 6.8 percent in July 2021.

The decline was entirely due to the statistical effect of the high base prevailing in August 2020.

Food inflation (Y-o-Y) increased marginally to 11.1 percent in August 2021 from 11.0 percent in July 2021, while Non-Food inflation (Y-o-Y) decreased to 3.0 percent in August 2021 from 3.2 percent in July 2021.

The NCPI, measured on an annual average basis, increased marginally to 5.5 percent in August 2021 from 5.4 percent in July 2021. The monthly change of NCPI was recorded at 0.36 percent in August 2021 due to increases observed in prices of items in both Food and Non-food categories.

Monthly changes of Food and Non-food categories recorded at 0.25 percent and 0.11 percent, respectively. Accordingly, within the Food category, prices of sugar, potatoes and fresh fish increased whereas, prices of rice, coconut oil and coconut recorded decreases. Prices of items in the Non-Food category recorded an increase mainly due to price increases observed in the Alcoholic Beverages and Tobacco (arecanuts) and Health (Payments to private hospitals/nursing homes room charges) sub-categories during the month. Year-on-year core inflation increased to 4.7 percent in August 2021 from 4.4 percent July 2021, while annual average core inflation remained unchanged for the fifth consecutive month at 4.4 percent in August 2021.