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, increased marginally to 4.2 per cent in December 2016 from 4.1 per cent in November 2016, on year-on-year basis. Both Food and Non-food categories contributed towards the year-on-year inflation in December 2016.

The change in the NCPI measured on an annual average basis remained unchanged from last month at 4.0 per cent in December 2016. 

There have been several media reports recently raising concerns with respect to the Employees’ Provident Fund (EPF).

An internal examination is currently underway under the direction of the Monetary Board on transactions of EPF in Government securities during 2015 and 2016. The law enforcement authorities have also been requested to carry out an external independent investigation into the issuance of Government securities in 2015 and 2016 and related matters, as it involves examining internal operations carried out by the staff of the Central Bank.

With regard to the operations of the EPF, the Monetary Board, during the past six months, has taken several measures to strengthen the decision making process with respect to investments. These serve to safeguard the interests of the members of the EPF.