NCPI based headline inflation at 70.2-pct in August 2022

Headline inflation, as measured by the year-on-year change in the National Consumer Price Index increased to 70.2% in August 2022 from 66.7% in July 2022.

This increase in Y-o-Y inflation was mainly driven by the monthly increases of both Food and Non-Food categories. Accordingly, Food inflation (Y-o-Y) increased to 84.6% in August 2022 from 82.5% in July 2022, while Non-Food inflation (Y-o-Y) increased to 57.1% in August 2022 from 52.4% in July 2022.

Monthly change of NCPI recorded at 2.45% in August 2022 due to price increases observed in items of both Food and Non-Food categories which were 0.91% and 1.53%, respectively. Accordingly, within the Food category, increases were observed in prices of fresh fish, eggs, biscuits and fruits. However, prices of dhal, rice and sugar decreased during the month.

Further, within the Non-Food category, increases were observed in prices of Housing, Water, Electricity, Gas and Other Fuels (Electricity, Materials for maintenance and Kerosene), Furnishing, Household Equipment and Routine Household Maintenance (Washing soap) and Miscellaneous Goods and Services sub-categories during the month. It is noteworthy that Transport (Petrol, Diesel and Bus fare) sub-category recorded a decline during the month.

Meanwhile, annual average inflation rose to 31.3% in August 2022 from 25.9% in July 2022.

The core inflation (Y-o-Y), which reflects the underlying inflation in the economy increased to 60.5% in August 2022 from 57.3% in July 2022, while annual average core inflation increased to 26.0% in August 2022 from 21.3% in July 2022.

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