NCPI based inflation dips in January 2021 | Daily News

NCPI based inflation dips in January 2021

Headline inflation as measured by the year-on year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100)1 decreased to 3.7 per cent in January 2021 from 4.6 per cent in December 2020.

This was due to the statistical effect of the high base prevailing in January 2020. Meanwhile, Food inflation (Y-o-Y) decreased to 5.9 per cent in January 2021 from 7.5 per cent in December 2020. Further, Non-Food inflation (Yo-Y) decreased to 1.8 per cent in January 2021 from 2.2 per cent in December 2020. The change in the NCPI measured on an annual average basis decreased to 5.8 per cent in January 2021 from 6.2 per cent in December 2020.

Monthly change of NCPI recorded at 0.62 per cent in January 2021 due to price increases observed in items of both Food and Non-food categories. Moreover, prices of items in the Non-Food category recorded an increase during the month mainly due to price increases observed in Health (fees to private medical practices and payments to private hospital room charges) and Furnishing, Household Equipment and Routine Household Maintenance (wages of servants) sub-categories.

Further, year-on-year core inflation decreased to 4.2 per cent in January 2021 from 4.7 per cent in December 2020, while annual average core inflation increased marginally to 4.2 per cent in January 2021 from 4.1 per cent in December 2020.