NCPI based headline inflation accelerates further on year-on-year basis in May 2022

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100)1 increased to 45.3% in May 2022 from 33.8% in April 2022. This increase in Yo-Y inflation was driven by the monthly increases of both Food and Non-Food categories. Accordingly, Food inflation (Y-o-Y) increased to 58.0% in May 2022 from 45.1% in April 2022, while Non-Food inflation (Y-o-Y) increased to 34.2% in May 2022 from 23.9% in April 2022.

Monthly change of NCPI recorded at 9.67% in May 2022 due to price increases observed in items of both Food and Non-Food categories which were 5.41% and 4.26%, respectively. Accordingly, within the Food category, prices of rice, milk powder, vegetables, fresh fish and bread recorded increases during the month. Further, within the Non-Food category, increases were observed in prices of Transport (Petrol, diesel and bus fare), Housing, Water, Electricity, Gas and Other Fuel (Materials for maintenance/reconstruction and LP gas), Furnishing, Household Equipment and Routine Household Maintenance, and Miscellaneous Goods and Services (Car insurance and soap) subcategories during the month.

Meanwhile, annual average inflation rose to 16.3% in May 2022 from 13.0% in April 2022.

The core inflation (Y-o-Y), which reflects the underlying inflation in the economy increased to 37.7% in May 2022 from 27.9% in April 2022, while annual average core inflation increased to 13.0% in May 2022 from 10.2% in April 2022.