Inflation up in June | Sunday Observer

Inflation up in June

Inflation increased to 4.2 per cent in July 2020  from 3.9 per cent in June 2020.

This was mainly driven by the monthly  increase of prices of items in the Non-food category along with the  statistical effect of the low base prevailed in July 2019.  

Food inflation (Y-o-Y) increased to 10.9 per cent in July  2020 from 10.0 per cent in June 2020.

Non-food inflation (Y-o-Y) also  increased marginally to 1.5 per cent in July 2020 from 1.4 per cent in  June 2020.

The change in the CCPI measured on an annual average basis  also increased marginally to 4.8 per cent in July 2020 from 4.7 per cent  in June. 

The monthly change of CCPI recorded at 0.1 per cent, was  mainly due to net effect of price changes observed in the items of the  Non-food category.

Within the Non-food category, prices of items in  Health (payments to private hospitals/ nursing homes) sub-category  increased during the month.

Prices of items in the Food  category also recorded marginal increases in July 2020. 

The core inflation (Y-o-Y), which reflects the underlying  inflation in the economy, increased marginally to 3.2 percent in July  2020 from 3.1 per cent in June 2020.

However, annual average core  inflation declined further to its sixteen months low of 4.0 percent in  July 2020 from 4.2 percent in June 2020.