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 (DCS), increased to 3.4 per cent in July 2018 from 2.5 per cent in June 2018, on year-on-year basis, mainly driven by low base that prevailed in the previous year as well as the monthly increase in the prices of items in the Non-food category. The change in the NCPI measured on an annual average basis decreased from 5.3 per cent in June 2018 to 5.1 per cent in July 2018.
When monthly change is considered, the NCPI increased marginally from 126.5 index points in June 2018 to 126.6 index points in July 2018 largely due to the increase in prices of the items in the Non-food category, particularly that of petrol and diesel in the Transport sub-category as well as of some items in the Miscellaneous goods and Services sub-category. Meanwhile, prices of the items in the Food category declined during the month where prominent price declines were observed in coconuts, rice and limes.
The NCPI Core inflation, which reflects the underlying inflation in the economy, increased to 2.3 per cent in July 2018 from 1.8 per cent in June 2018 on year-on-year basis. Meanwhile, annual average NCPI Core inflation declined to 2.7 per cent in July 2018 from 2.9 per cent in June 2018.