August inflation falls: Central Bank
View(s):Headline 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, fell to 2.5 per cent last month from 3.4 per cent in July, on a year-on-year basis.
This was mainly driven by the monthly decline in food prices in August, the Central Bank (CB) said last week.
The change in the NCPI measured on an annual average basis decreased from 5.1 per cent in July to 4.7 per cent last month.
When the monthly change is considered, the NCPI decreased from 126.6 index points in July to 125.4 index points in August largely due to decline in prices of the items in the food category, particularly that of vegetables, coconuts, green chillies and fresh fish.
Meanwhile, price increases were observed in the sub-categories in the Non-food category, particularly that of petrol, diesel and taxi in the Transport sub-category; some items in the Housing, Water, Electricity, Gas and Other Fuels; Furnishing, Household equipment and household maintenance; and Alcoholic beverages and Tobacco.
However the NCPI Core inflation, which reflects the underlying inflation in the economy, increased to 2.7 per cent in August from 2.3 per cent in July on a year-on-year basis. Annual average NCPI Core inflation declined to 2.5 per cent in August from 2.7 per cent in July.