Food inflation increased to 9.7 per cent in April 2021

Food inflation (Y-o-Y) increased to 9.7 per cent in April 2021 from 8.8 per cent in March 2021, a report issued by the Central Bank states.

According to the report: Headline inflation, as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100), increased to 5.5 per cent in April 2021 from 5.1 per cent in March 2021. This was mainly due to the statistical effect of the low base prevailed in April 2020. Meanwhile, Food inflation (Y-o-Y) increased to 9.7 per cent in April 2021 from 8.8 per cent in March 2021 and Non-Food inflation (Y-o-Y) increased to 2.2 per cent in April 2021 from 2.0 per cent in March 2021.

The NCPI, measured on an annual average basis, remained unchanged at 5.3 per cent in April 2021.

Monthly change of NCPI recorded a marginal increase in April 2021. This was due to price increases observed in items of both Food and Non-food categories. Accordingly, within the Food category, increases were observed mainly in the prices of coconut oil, fresh fish and fresh fruits during April 2021. However, prices of coconut and vegetables recorded a decrease during the month. Moreover, prices of items in the Non-Food category recorded an increase during the month due to price increases observed in the Clothing and Footware (clothing), Transport (lubricant oil) and Miscellaneous Goods and Services (hair cutting and shaving charges) sub-categories.

Further, year-on-year core inflation decreased to 4.1 per cent in April 2021 from 4.3 per cent in March 2021, while annual average core inflation increased marginally to 4.4 per cent in April 2021 from 4.3 per cent in March 2021, the report stated.