Headline inflation as measured by the year-onyear (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100)1 increased to 5.1 percent in March 2021 from 4.2 percent in February 2021.
This was due to the statistical effect of the low base prevailed in March 2020.
Meanwhile, Food inflation (Y-o-Y) increased to 8.8 percent in March 2021 from 6.9 percent in February 2021 and Non-Food inflation (Y-o-Y) increased marginally to 2.0 percent in March 2021 from 1.9 percent in February 2021. The change in the NCPI measured on an annual average basis decreased to 5.3 percent in March 2021 from 5.5 percent in February 2021.
Monthly change of NCPI recorded at -0.48 percent in March 2021 due to price decreases observed in items of Food category.
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Moreover, monthly changes of Food and Non-food categories recorded at -0.63 percent and 0.16 percent, respectively in March 2021. Accordingly, within the Food category, decreases were observed mainly in the prices of vegetables, green chilli and red onion during March 2021.
Prices of items in the Non-Food category recorded an increase during the month mainly due to price increase observed in the Restaurants and Hotels sub-category.
Further, year-on-year core inflation increased to 4.3 percent in March 2021 from 4.1 percent in February 2021, while annual average core inflation increased marginally to 4.3 percent in March 2021 from 4.2 percent in February 2021.