Headline inflation as measured by the year on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100)1 decreased to 7 per cent in March 2020 from 8.1 per cent in February 2020.
This was driven by monthly decrease of prices of the items in the Food category. Accordingly, Food inflation (Y-o-Y) declined to 14.1 per cent in March 2020 from 16.3 per cent in February 2020. Meanwhile, Non-food inflation (Y-o-Y) recorded at 1.8 per cent in March 2020. The change in the NCPI measured on an annual average basis increased to 4.9 per cent in March 2020 from 4.5 per cent in February 2020.
Monthly change of NCPI recorded at -1.3 per cent in March 2020 due to declines observed in prices of items in the Food category, driven by the seasonal supply of food crops and timely intervention of the government to reduce prices of certain food items amid COVID-19 outbreak.
Accordingly, within the Food category, prices of vegetables, red onions, rice and dhal recorded decreases in March 2020. However, within the Non-Food category, prices of the items in Alcoholic Beverages and Tobacco (beetle leaves); and Health (payments to medical tests) sub-categories recorded increases.
Continuing its decreasing trend for the fifth consecutive month, the core inflation (Y-O-Y) decreased further to 3.2 per cent in March 2020 from 3.4 per cent in February 2020.
Meanwhile, annual average core inflation decreased to 5.2 per cent in March 2020 from 5.5 per cent in February 2020.
0 comments: