CCPI-based headline inflation remains negative in Nov.

Saturday, 30 November 2024 00:06 - - {{hitsCtrl.values.hits}}

In line with the Central Bank of Sri Lanka’s (CBSL) near term projections, headline inflation, as measured by the year-on-year (YoY) change in the Colombo Consumer Price Index (CCPI), remained in the negative territory for the third consecutive month, recording a deflation of 2.1% in November 2024 compared to the deflation of 0.8% in October 2024.

The CBSL said this deceleration in headline inflation is broadly in line with projections.

It said non-food inflation (YoY) decelerated further to 3.3% in November 2024 from 1.6% in October 2024. Meanwhile, food inflation (YoY) also decelerated to 0.6% in November 2024 from 1.0% October 2024. On a month-on-month basis, the CCPI recorded a decline of 0.25% in November 2024 due to a 0.02% reduction in the prices of items in the Food category and a 0.23% reduction in the prices of items in the Non-Food category.

Meanwhile, core inflation (YoY), which reflects the underlying inflation trends in the economy, moderated further to 2.7% in November 2024 from 3.0% in October 2024.

“According to the latest projections, it is expected that headline inflation will remain negative in the next few months, deeper than previously projected, mainly due to larger downward adjustments in energy prices and reduction in volatile food prices. However, inflation is expected to turn positive thereafter and gradually align with the targeted level of 5% over the medium term, aided by appropriate policy measures,” the CBSL added.