(UTV | COLOMBO) – Headline inflation as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100)1 decreased further to 5.2% in May 2020 from 5.9% in April 2020. This was mainly driven by the statistical effect of the high base prevailed in May 2019.
Meanwhile, Food inflation (Y-o-Y) declined to 11.1% in May 2020 from 12.2% in April 2020 and Non-food inflation (Y-o-Y) also declined to 0.8% in May 2020 from 1.1% in April 2020.
The change in the NCPI measured on an annual average basis increased marginally to 5.2% in May 2020 from 5.1% in April 2020.
Monthly change of NCPI was at 0.4% in May 2020 mainly due to increases observed in prices of items in the Food category. Accordingly, within the Food category, increases were observed mainly in the prices of vegetables, fresh fish, dhal and coconut oil during May 2020.
However, it is noteworthy that prices of big onions and coconuts reported significant declines during the month. Meanwhile, within the Non-food category, prices of the items in Alcoholic Beverages, Tobacco and Narcotics (betel leaves); and Recreation and Culture
(newspapers) sub-categories declined in May 2020.
Further, core inflation (Y-o-Y) increased to 3.7% in May 2020 from 3.2% in April 2020 while annual average core inflation decreased to 4.8% in May 2020 from 5.0% in April 2020.