CCPI based headline inflation remains negative in Oct.

Friday, 1 November 2024 00:20 - - {{hitsCtrl.values.hits}}

In line with the Central Bank’s near term projections, headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index remained in the negative territory for the second consecutive month, recording a deflation of 0.8% in October 2024 compared to 0.5% in September 2024.

CBSL said the Non-Food deflation (Y-o-Y) deepened further to 1.6% in October 2024 from 0.5% in September 2024. Nevertheless, food category recorded an inflation (Y-o-Y) of 1.0% in October 2024 compared to the deflation of 0.3% in September 2024.

On a month-on-month basis, the CCPI recorded a decline of 0.53% in October 2024 due to 0.20% reduction in the prices of items in the Food category and 0.33% reduction in the prices of items in the Non-Food category.

Core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, moderated to 3% in October 2024 from 3.3% in September 2024.

“Looking ahead, current deflation conditions are expected to continue for a few months, driven by changes to administratively determined prices and easing of supply conditions. However, thereafter, inflation is expected to gradually align with the targeted level of 5%, aided by appropriate policy measures,” CBSL added.