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), increased to 8.6 per cent in September 2017 from 7.9 per cent in August 2017, on year-on-year basis. Both Food and Nonfood categories contributed towards the year-on-year inflation in September 2017.

The change in the NCPI measured on an annual average basis increased from 6.5 per cent in August 2017 to 6.8 per cent in September 2017.

When the monthly change is considered, the NCPI increased from 122.3 index points in August 2017 to 123.3 index points in September 2017. This monthly increase was mainly due to the increase in prices of the items in the Food category. Within the Food category, prices of coconuts, red onions, rice, limes, some fruits, big onions and sugar increased during the month. Meanwhile prices of vegetables, fresh fish, garlic and Mysore dhal reported marginal decrease during the month. Prices in Clothing and Footwear; Housing, Water, Electricity, Gas and Other Fuels (LP Gas); Furnishing, Household Equipment and Routine Household Maintenance; Education (School fees (International)); and Miscellaneous Goods and Services sub-categories increased. Prices in Communication (Internet charges) sub-category decreased marginally during September 2017. Alcoholic Beverages and Tobacco (Beetle leaves) sub-category also increased during September 2017. Meanwhile, prices in Health; Transport; Recreation and Culture; and Restaurants and Hotels sub-categories remained unchanged during the month.

The NCPI Core inflation, which reflects the underlying inflation in the economy decreased to 4.6 per cent in September 2017 from 4.8 per cent in August 2017 on year-on-year basis. Annual average NCPI Core inflation declined from 5.8 per cent in August 2017 to 5.7 per cent in September 2017.