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 prevailed 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 (Y-o-Y) decreased to 1.8 per cent in January 2021 from 2.2 per cent in December 2020.

Purchasing Managers' Indices for both Manufacturing and Services activities expanded in January 2021.

Manufacturing PMI remained expanded in January 2021 recording an index value of 60.2 owing to the expansion in New Orders and Production. The increase of Stock of Purchases sub-index also contributed to the overall expansion of the PMI.

Starting the year with a positive note, services sector PMI recorded a value of 56.2 in January 2021. This indicates a further recovery in the services sector, which was affected by the second wave of COVID-19 pandemic. This increase was underpinned by the expansions observed in new businesses, business activities and expectations for activity.

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