Jun 22, 2020 (LBO) – Headline inflation as measured by the year-on-year change in the National Consumer Price Index decreased further to 5.2 percent in May from 5.9 percent in April.
This was mainly driven by the statistical effect of the high base that prevailed in May 2019.
Meanwhile, Food inflation (Y-o-Y) declined to 11.1 percent in May 2020 from 12.2 percent in April 2020 and Non-food inflation (Y-o-Y) also declined to 0.
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8 percent in May 2020 from 1.1 percent in April 2020.
The monthly change of NCPI was at 0.4 percent 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, prices of big onions and coconuts reported significant declines during the month.
Meanwhile, within the Non-food category, prices of the items in Alcoholic Beverages, Tobacco and Narcotics (betel leaves); and Recreation and Culture (newspapers) sub-categories declined in May 2020.
Further, core inflation (Y-o-Y) increased to 3.7 percent in May 2020 from 3.2 percent in April 2020 while annual average core inflation decreased to 4.8 percent in May 2020 from 5.0 percent in April 2020.