Inflation sharply up in April 2022

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100)1 increased to 33.8 per cent in April 2022 from 21.5 per cent in March 2022, the Central Bank said on Tuesday.

This increase in Yo-Y inflation was driven by the monthly increases of both Food and Non-Food categories. Subsequently, Food inflation (Y-o-Y) increased to 45.1 per cent in April 2022 from 29.5 per cent in March 2022, while Non-Food inflation (Y-o-Y) increased to 23.9 per cent in April 2022 from 14.5 per cent in March 2022.

Monthly change of NCPI recorded at 10.22 per cent in April 2022 due to price increases observed in items of both Food and Non-Food categories which were 6.03 per cent and 4.19 per cent, respectively. Accordingly, within the Food category, increases were observed in prices of rice, milk powder, dhal, sugar and bread.

Further, prices of items in the Non-Food category recorded increases mainly due to price increases observed in the Transport (Petrol, bus fare and diesel), Housing, Water, Electricity, Gas and Other Fuel (Materials for maintenance, Housing rent and LP Gas), Health (Fees to private medical practices), Education (Tuition fees), and Restaurant and Hotels sub-categories during the month, the bank statement said.

Meanwhile, annual average inflation rose to 13.0 per cent in April 2022 from 10.6 per cent in March 2022. The core inflation (Y-o-Y), which reflects the underlying inflation in the economy increased to 27.9 per cent in April 2022 from 17.3 per cent in March 2022, while annual average core inflation increased to 10.2 per cent in April 2022 from 8.2 per cent in March 2022.