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% cent 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 per cent in May 2020 from 12.2 per cent in April 2020 and Non-food inflation (Y-o-Y) also declined to 0.8 per cent in May 2020 from 1.1 per cent in April 2020. The change in the NCPI measured on an annual average basis increased marginally to 5.2 per cent in May 2020 from 5.1 per cent in April 2020. Monthly change of NCPI was at 0.4 per cent 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.
Further, core inflation (Y-o-Y) increased to 3.7 per cent in May 2020 from 3.2 per cent in April 2020 while annual average core inflation decreased to 4.8 per cent in May 2020 from 5.0 per cent in April 2020.
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