Headline inflation as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100) decreased to 4.6 percent in December 2020 from 5.2 percent in November 2020. This was due to the statistical effect of the high base prevailed in December 2019. Meanwhile, Food inflation (Y-o-Y) decreased to 7.5 per cent in December 2020 from 9.4 per cent in November 2020, whereas Non-food inflation (Y-o-Y) increased to 2.2 per cent in December 2020 from 1.7 per cent in November 2020.
The change in the NCPI measured on an annual average basis decreased marginally to 6.2 per cent in December 2020 from 6.3 per cent in November 2020.
Monthly change of NCPI recorded at 1.03 per cent in December 2020 mainly due to increases observed in prices of items in Food category. Moreover, monthly changes of Food and Non-food categories recorded at 1.02 per cent and 0.01 per cent, respectively in December 2020. Accordingly, within the Food category, increases were observed mainly in the prices of coconut, vegetables, potato, rice and red onion during December 2020.
Further, year-on-year core inflation increased to 4.7 per cent in December 2020 from 4.5 per cent in November 2020, while annual average core inflation decreased marginally to 4.1 per cent in December 2020 from 4.2 per cent in November 2020.