Inflation, as measured by the change in the National Consumer Price Index (NCPI) (2013=100), which is compiled by the Department of Census and Statistics, increased marginally to 4.2 per cent in December 2016 from 4.1 per cent in November 2016, on year-on-year basis. Both
Food and Non-food categories contributed towards the year-on-year inflation in December 2016. The change in the NCPI measured on an annual average basis remained unchanged from last month at 4.0 per cent in December 2016.
When the monthly change is considered, the NCPI increased from 114.7 to 116.6 index points from October to November 2016. This monthly increase was mainly due to the increase in prices of the items in the Non-food category. Within the Non-food category prices increased in Clothing and Footwear; Housing, Water, Electricity, Gas and Other Fuels; Furnishing, Household Equipment and Routine Household Maintenance; Health; Communication; Recreation and Culture and Miscellaneous Goods and Services sub-categories. Meanwhile, prices increased slightly in Transport and Restaurants and Hotels sub-category, while prices in Education sub-category remain unchanged. Within the Food category, prices of rice, coconuts, vegetables, limes and potatoes increased during the month. Prices in Alcoholic Beverages and Tobacco also increased during November 2016. The price increases observed in Alcoholic Beverages and Tobacco; Health; and Communication sub-categories are mainly due to the re-imposition of Value Added Tax (VAT).
The NCPI Core inflation, which reflects the underlying inflation in the economy increased to 6.8 per cent in November 2016 from 5.7 per cent in October 2016. Annual average NCPI Core inflation increased slightly to 5.8 per cent in November 2016 from 5.7 per cent in October 2016.