Feb. inflation spikes to 8.2%

Increases from 6.5% in January with Food and Non-food categories contributing, core inflation remains unchanged

Inflation, as measured by the change in the National Consumer Price Index (NCPI), which is compiled by the Department of Census and Statistics, increased to 8.2% in February 2017 from 6.5% in January 2017, on a year-on-year basis. 

Both the Food and Non-food categories contributed towards the year-on-year inflation in February 2017, the Central Bank said in a statement yesterday. The low base that prevailed in February 2016 was the significant contributor to the sharp increase in year-on-year inflation in February 2017, in addition to the monthly price increase observed.

The change in the NCPI measured on an annual average basis increased to 5.1% in February 2017 from 4.6% in January 2017.

When the monthly change is considered, the NCPI increased from 119.3 index points to 119.9 index points from January 2017 to February 2017. 

This monthly increase was mainly due to the increase in the prices of the items in the Food category. Within the Food category, the prices of coconuts, vegetables, coconut oil, green chilies and fresh fish increased during the month. 

In the Non-food category, the prices of items in the Transport, Education, Housing, Water, Electricity, Gas and Other Fuels, Furnishing, Household Equipment and Routine Household Maintenance, Miscellaneous Goods and Services and Clothing and Footwear subcategories increased. Prices in the Restaurants and Hotels subcategory increased marginally. 

Prices in Alcoholic Beverages and Tobacco and Recreation and Culture decreased during February 2017 while prices in the Health subcategory reported a marginal decrease. Meanwhile, prices in the Communication subcategory remained unchanged during the month.

NCPI Core inflation, which reflects underlying inflation in the economy, remained unchanged at 7.1% in February 2017. Annual average NCPI Core inflation increased to 6.4% in February 2017 from 6.2% in January 2017.