Headline inflation as measured by the year-on-year change in the National Consumer Price Index (NCPI, 2013=100) increased to 1.2 per cent in January 2019 from 0.4 per cent in December 2018. The increase observed in year-on-year inflation in January 2019 is driven by the base effect and increase of prices of items in Non-food category. Year-on-year Non-food inflation increased to 6.5 per cent in January 2019 from 4.7 per cent in December 2018. However, year-on-year Food inflation decreased further to -4.8 per cent in January 2019 from -4.5 per cent in December 2018.

The change in the NCPI measured on an annual average basis decreased to 1.8 per cent in January 2019 from 2.1 per cent in December 2018.

Manufacturing activities expanded at a higher rate in January 2019 compared to December 2018. This was mainly driven by the expansion in employment and production, especially in manufacturing of textiles, wearing apparels, leather and related activities. A significant improvement in employment was experienced with the recruitment of new employees to fill the vacancies. Accordingly, the production also increased with the enhanced level of employment as well as the orders carried forward from the previous month.