Headline 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 (DCS), decreased to 3.2 per cent in February 2018 from 5.4 per cent in January 2018, on year-on-year basis. The high base prevailed in February 2017 as well as the monthly decline in Food prices in February 2018 supported by the favourable supply conditions attributed to this sharp decline in year-on-year inflation in February 2018.

The change in the NCPI measured on an annual average basis decreased from 7.6 per cent in January 2018 to 7.2 per cent in February 2018.

When the monthly change is considered, the NCPI declined from 125.8 index points in January 2018 to 123.7 index points in February 2018 largely due to the decline in prices of the items in the Food category, particularly that of vegetables, green chillies, red onions, rice and big onions. Meanwhile, price increases were observed in all the sub-categories in the Non-food category except for Communication sub-category.

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF's Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.‍