Economy News: Headline inflation as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100)1increased to 8.1 per cent in February 2020 from 7.6 per cent in January 2020. This was driven by the statistical effect of the low base that prevailed in February 2019. Further, Food inflation (Y-o-Y) stood at 16.3 per cent in February 2020 while Non-food inflation (Y-o-Y) recorded at 2.1 per cent.
The change in the NCPI measured on an annual average basis increased to 4.5 per cent in February 2020 from 4.1 per cent in January 2020. The monthly change of NCPI recorded at 0.0 per cent in February 2020. This was due to set off the price effects of items in the non-food category, which increased by 0.05 percent, with the prices decrease in the food category by the same magnitude. Within the Food category, prices of
vegetables and rice recorded decreases in February 2020. However, within the Non-Food category, prices of the items in Alcoholic Beverages and Tobacco; Transport; and Clothing and Footwear sub-categories recorded increases.
Continuing its decreasing trend for the fourth consecutive month, the core inflation (Y-O-Y) decreased to 3.4 percent in February 2020 from 3.9 per cent in January 2020. Meanwhile, annual average core inflation decreased marginally to 5.5 percent in February 2020 from 5.6 percent in January 2020.