Sri Lanka’s deflationary trend continued to ease in June 2025, signaling a potential shift toward positive inflation in the coming months, according to the latest data from the Central Bank of Sri Lanka.
The Colombo Consumer Price Index (CCPI) recorded a year-on-year (Y-o-Y) headline deflation of 0.6% in June, slightly lower than the 0.7% recorded in May. On a monthly basis, the CCPI rose by 0.9%, mainly driven by food price increases.
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The Food category contributed 0.62 percentage points to the monthly rise.
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Non-Food items added 0.28 percentage points, reflecting modest sectoral price adjustments.
Core inflation, which excludes volatile food and energy components, rose to 1.5% in June from 1.2% in May—indicating a gradual pickup in underlying inflationary momentum.
Sector Highlights:
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Food inflation (Y-o-Y): Eased to 4.3% from 5.2% in May.
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Non-Food deflation: Slowed to 2.8%, down from 3.3%.
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Quarterly average inflation (Q2 2025): Remained consistent with Central Bank projections.
Looking ahead, the Central Bank expects inflation to turn positive and gradually align with its 5% target rate. Officials emphasized that appropriate monetary policy measures will support this transition and ensure macroeconomic stability.
