Consumer Price Index (CPI) in May 2006 experienced an increase (inflation) of 0.37% (m-t-m). Such result was higher compared to inflation in April 2006 of 0.05%. The annual inflation growth (y-o-y) amounted to 15.60%, higher compared to both annual inflation in May 2005 of 7.40% and annual inflation in April 2006 of 15.40%. The calendar year inflation(y-t-d) amounted to 2.41%.

Inflation of core components in May 2006 was 0.44% (m-t-m) or contributing 0.25% to the CPI Inflation. The inflation growth of core components for the calendar year (y-t-d) 2006 amounted to 2.40%. The yearly inflation (y-o-y) of core components was 9.54%

CPI inflation rose to 17.1% (y-o-y) at the end of 2005.  The high CPI inflation was primarily due to the administered price adjustments i.e. fuel price hike in March and October 2005 and volatile food price increase.  This was further exacerbated by the higher inflation expectation post fuel hike in Oct 2005 and sharp depreciation of exchange rate. 

CPI inflation has eased up to 15.74% (y-o-y) or 1.98% (y-t-d), below the original projection for Q1/2006 in line with stable and appreciating exchange rate, minimal administered price increases (i.e. delayed in planned increase of electricity bills) and consistent monetary policy.  Core inflation, however, remained stable at a high 9.64% (y-o-y) or 1.63% (y-t-d) in keeping with lack of significant improvement in inflation expectations.