Headline inflation increased significantly from 2.4 percent in February to 3.2 percent in March 2021, reverting to within the Bank’s medium-term objective range of 3 - 6 percent, and higher than the 2.2 percent in March 2020.  The increase in inflation between February and March 2021 mainly reflects the upward adjustment in domestic fuel prices in March 2021, as reflected in Transport inflation which increased from -1.4 in February 2021 to 1.4 percent in March 2021. The rise in inflation also reflects the increase in the annual price changes for some categories of goods and services in the same period: Alcoholic Beverages and Tobacco (from 6.5 to 7.1 percent); Food & Non-Alcoholic Beverages (3.7 to 4 percent); Restaurants and Hotels (from 1.5 to 1.7 percent); Miscellaneous Goods and Services (from 1.2 to 1.4 percent); Furnishing, Household Equipment and Routine Maintenance (from 1.9 to 2 percent); and Health (2.2 to 2.3 percent). However, the upward pressure on inflation was partly offset by inflation remaining stable with respect to: Clothing and Footwear (2.8 percent); Housing, Water, Electricity, Gas and Other Fuels (7.2 percent); Communication (0.8 percent); Recreation and Culture (1.7 percent) and Education (1.7 percent).

The 16 percent trimmed mean inflation and inflation excluding administered prices increased from 2.4 percent and 3.6 percent to 2.8 percent and 3.9 percent, respectively, in the same period.