Inflation in May rose by 1.4 percent
July 7, 2016 7:13 pm
Supply shortages and temporary price hikes in agricultural products caused by the recent natural disasters led to an increase in inflation in May.
The Inflation rate rose to 5.2 percent, an increase of 1.4 percent compared to April.
The price of vegetables rose by 5.6 percent in both the Central and Western divisions, while prices in the Northern division were higher by 3.3 percent when compared to a year ago.
The RBF says in the coming months, the inflation in food prices is expected to taper off as the supply of agricultural products normalizes – except for those items that require longer production time.
This poses the risk of continued upward pressure on inflation for the rest of the year.
The RBF says given these developments, the year-end inflation forecast of two percent may rise.