Inflation, as measured by the change in the National Consumer Price Index (NCPI) (2013=100), which is compiled by the Department of Census and Statistics, has increased to 6.4 per cent in June 2016 from 5.3 per cent in May 2016, on year on-year basis.
According to released official data, NCPI Core inflation, which reflects the underlying inflation in the economy on the other hand increased to 7.7 per cent in June 2016 from 7.2 per cent in May 2016, on year-on-year basis. Annual average NCPI Core inflation increased to 5.3 per cent in June 2016 from 5.0 per cent in May 2016.
The Central Bank said that both Food and Non-food categories contributed towards the year-on-year inflation spike in June 2016.
The change in the NCPI measured on an annual average basis increased to 3.1 per cent in June 2016 from 2.7 per cent in May 2016.
When the monthly change in the NCPI is considered, the NCPI increased by 2.1 per cent from 113.7 index points in May 2016 to 116.1 index points in June 2016. This monthly increase was mainly due to the increase in prices of the items in the Food category.
Prices of vegetables, green chillies, rice, fresh fish, sugar, potatoes and red onions increased during the month. Within
the Non-food category prices in Clothing and Footwear; Housing, Water, Electricity, Gas, and Other Fuels; Furnishing, Household Equipment and Routine Household Maintenance; Communication; Restaurants and Hotels and Miscellaneous Goods and Services sub-categories increased during June 2016.
Meanwhile, prices in Alcoholic Beverages and Tobacco sub-category decreased during June 2016. Nevertheless, prices in Health; Transport; Recreation and Culture; and Education sub-categories remained unchanged during the month.