Headline inflation, as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100) increased to 73.7% in September 2022 from 70.2% in August 2022. This increase in Y-o-Y inflation was driven by the monthly increases of both Food and Non-Food categories. Accordingly, Food inflation (Y-o-Y) increased to 85.8% in September 2022 from 84.6% in August 2022, while Non-Food inflation (Y-o-Y) increased to 62.8% in September 2022 from 57.1% in August 2022.
It is noteworthy that the moderation observed in month on month inflation recently continued in September 2022. Accordingly, monthly change of NCPI recorded at 2.34% in September 2022 due to price increases observed in items of both Non-Food and Food categories, which were 1.96% and 0.38%, respectively. Within the Non-Food category, increases were observed in prices of Housing, Water, Electricity, Gas and Other Fuels (Electricity bill, Kerosene oil and Water bill) and Miscellaneous Goods and Services sub-categories during the month. Further, within the Food category, increases were observed in prices of Fruits, Wheat Flour and Chicken. However, prices of Rice, Sugar and Dhal decreased during the month.
The core inflation (Y-o-Y), which reflects the underlying inflation in the economy increased to 64.1% in September 2022 from 60.5% in August 2022, while annual average core inflation increased to 31.0% in September 2022 from 26.0% in August 2022.
-ADA DERANA