Inflation at 3.4pc
The food inflation dropped to 0.2 per cent in mid-May, 2017 from 9.6 per cent in the corresponding period of the previous fiscal. “A fall in prices of pulses and legumes by 13.4 per cent and vegetable by 13.1 per cent accounted for such a decline in food inflation,” according to NRB.
Similarly, the non-food inflation also moderated to six per cent during the review period from 10.4 per cent in the corresponding period of the previous year. The decline in growth rate of prices of clothes and footwear, housing and utilities, communication and health, among others, contributed to moderation in non-food inflation in the review period, the NRB report states.