The Consumer Price Index (CPI), which measures inflation, rose by 9.0 per cent year-on-year in May (slightly below the 9.1 per cent rate recorded in April). Year-on-year, rates continue to hold below single digits as observed since the beginning of the year.
The Core sub-index continues to show a muted rise due to base effects. As stated in the April 2013 CPI Report, the year-on-year changes in the Core index for the rest of the year are likely to be muted as a result of substantially higher price levels this time last year. The increase in food prices captured by the Food Sub-index, while significant, are also lower year-on-year. Through the first five months of 2013, the Food Sub- index has averaged 10.0 per cent, 1.8 per cent lower than rates recorded over the same period last year.