CCPI eases further in September

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index has decreased to 1.3% in September from 4% in August 2023. 

The decline in the headline inflation is mostly in line with the projections envisaged by the Central Bank of Sri Lanka (CBSL) in July 2023.

The food deflation YoY continued for the third consecutive month recording 5.2% in September from 4.8% in August 2023. Meanwhile, the non-food inflation YoY decreased further to 4.7% in September from 8.7% in August 2023. 

Monthly change of CCPI recorded at 0.88% in September due to the price increases of 0.18% observed in the items of food category and 0.70% recorded in the items of non-food category. 

The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, decreased to 1.9% in September from 4.6% in August 2023.

Looking ahead, based on the latest macroeconomic projections of the CBSL and available information, it said inflation is expected to stabilise around mid-single digit level over the medium term, aided by appropriate policy measures alongside well-anchored expectations.