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April inflation drops to 1.6%

April inflation drops to 1.6%
Year on year inflation declined to 1.6% from 2.8% in March 2018, which is the lowest since February 2016, the Census and Statistics Department said yesterday (21 may).
Contributions to inflation in April 2018 from food group and non-food group are -0.2% and 1.7% respectively, whilst contributions of these two groups to the inflation in April 2017 were 5.2% and 3.3% respectively, resulting in headline inflation of 8.4%.
However, when compared to month on month changes, NCPI in April 2018 has increased to 122.9 from 122.8, reported in March 2018. This shows an increase of 0.1 index points, i.e., 0.1% in April 2018, as compared to March 2018. This month on month change was contributed by an increase of expenditure on non-food items by 0.12%, and a decrease of expenditure value of food items by 0.11%.
Decreases in expenditure value of food items were reported for vegetables, big onions, coconuts, eggs, gram, rice and green chilies. However, increases in expenditure value of food items were reported for limes, potatoes, tea dust, banana, chicken, fresh fish, dried chilies, infant milk powder and red onions.

The increases in expenditure value of non-food items in April 2018, compared to the previous month, was due to the expenditure value increases in groups of ‘Alcoholic beverages, Tobacco and Narcotics’, ‘Clothing and Footwear’, ‘Housing, Water, Electricity, Gas and Other fuels’, ‘Furnishings, Household equipment and Routing household maintenance’ and ‘’Transport’. In the ‘Housing, Water, Electricity, Gas and Other fuels’ group, the expenditure value increase was due to the increase in price of LP Gas with effect from 28 April 2018, and in the ‘Transport’ group, the expenditure value increase was due to the increase in price of fuel with effect from March 2018. 

Further, the group of ‘Miscellaneous Goods and Services’ recorded a very slight expenditure value increase, compared to the preceding month. Meanwhile, the expenditure value of ‘Health’, ‘Communication’, ‘Recreation and Culture’, ‘Education’ and ‘Restaurants & Hotels’ groups remained unchanged during the month.
(FT)
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