Headline inflation, as measured by the year-onyear (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100), decreased marginally to 6.7 per cent in August 2021 from 6.8 per cent in July 2021. This decline was entirely due to the statistical effect of the high base prevailed in August 2020. Meanwhile, Food inflation (Y-o-Y) increased marginally to 11.1 per cent in August 2021 from 11.0 per cent in July 2021, while Non-Food inflation (Y-o-Y) decreased to 3.0 per cent in August 2021 from 3.2 per cent in July 2021.

The NCPI, measured on an annual average basis, increased marginally to 5.5 per cent in August 2021 from at 5.4 per cent in July 2021.

Purchasing Managers' Indices for both Manufacturing and Services activities contracted in August 2021.

The resurgence of the COVID-19 pandemic in August 2021 has slowed down the manufacturing activities in the country.

Services PMI dropped to an index value of 46.2 in August 2021 with the restrictions imposed to contain the further spread of the COVID-19.