The National Consumer Price Index (NCPI) with an index reference period 2013=100 was updated to a new index reference period of 2021= 100 from January 2023. Issuing the NCPI, for the month of April 2023, the Director General of Census and Statistics said that headline inflation as measured by the Year-on-Year change (The percentage change in the current month NCPI over same month NCPI of last year) based on the NCPI has been compiled as 33.6%. The headline inflation reported for the month of March 2023 was 49.2%. Contributions to the inflation rate of April 2023 from the food group and non-food group are 12.3% and 21.3% respectively. With respect to April 2022, the reported inflation for the month of April 2023 was mainly due to the higher price levels prevailed in both food and non-food groups. Anyway, on a monthly basis, the Year-on- Year inflation of the food group decreased to 27.1% in April 2023 from 42.3% in March 2023 and the Year- on-Year inflation of the non-food group decreased to 39.0% in April 2023 from 54.9% in March 2023.

Comparing the month-on-month changes, NCPI (Base 2021=100) in April 2023 has decreased to 202.7 from

204.8 reported in March 2023. This shows a decrease of 2.1 index points or 1.03 percent as compared to March 2023. The month-on-month change was contributed by increases in food items of 0.12% and decreases in non-food items of 1.15% respectively.

Price increases of food items were mainly reported for Chicken, Fresh fish, Eggs, Limes, Tea dust/leaves, Coconuts, Potatoes, Fresh fruits, Sugar, Ginger, Green gram, Canned fish, Green chilies and Infant milk powder. However, decreases in index values were reported for Rice, Dried fish, Chili powder, Milk powder, Dried chilies, Big onions, Mysore dhal, Bread (normal), Wheat flour and Turmeric powder.

The decreases in index values of non-food groups in April 2023 compared to the previous month was mainly due to the price decreases in groups of items ‘Alcoholic Beverages, Tobacco and Narcotics’ (Beetle leaves), ‘Housing, Water, Electricity, Gas and Other fuels’ (Materials for the Maintenance and LP Gas), ‘Transport’ (Petrol, Diesel and Bus fare), ‘Restaurants and Hotels’ and ‘Miscellaneous Goods and Services’ (Toilet soap). However, price increases in groups of items were reported for ‘Clothing and Footwear’, ‘Health’ (Fees to private medical practices), ‘Recreation and Culture’ (Exercise books and stationeries) and ‘Education’ (Tuition fees). Further, very slight price increase was reported in the group of ‘Furnishing, Household equipment and Routine household maintenance’. Meanwhile, the price index of ‘Communication’ group remained unchanged during the month.

Core inflation, which reflects the underlying inflation by excluding volatile items of food, energy and transport groups in the economy as measured by the Year-on-Year change based on NCPI (Base 2021=100) for the month of April 2023 was decreased to 31.8% from 44.2% reported in month of March 2023.