The Central Bank of Sri Lanka (CBSL) reported that headline inflation, measured by the Colombo Consumer Price Index (CCPI), rose to 1.2% in August 2025, marking the end of 11 consecutive months of deflation. In July, the index had recorded a deflation of 0.3%.
Food inflation increased to 2.0% from 1.5% in July, while non-food inflation, which had remained negative since September 2024, turned positive at 0.8%, compared to -1.2% in July.
On a month-on-month basis, the CCPI declined by 0.38% in August, mainly due to falling food prices.
Core inflation, reflecting underlying trends in the economy, accelerated to 2.0% from 1.6% in July. CBSL projections indicate a gradual rise in inflation toward the 5% target, supported by policy measures. (NewsWire)
