Sri Lanka’s inflation rate, as measured by the National Consumer Price Index (NCPI) on a Year-on-Year (Y-o-Y) basis, declined to -4.0% in January 2025, down from -2.0% in December 2024, according to the latest data from the Department of Census and Statistics.
Food inflation also saw a further decline, reaching -2.5% in January 2025, compared to -1.0% in December 2024. Meanwhile, non-food inflation dropped to -5.2% in January, down from -2.9% in December.
Despite the decline in Y-o-Y inflation, the NCPI for January 2025 increased to 206.4, marking a 1.8-point rise (0.88%) from December 2024’s 204.6 index. This increase represents an additional Rs. 913.08 in the cost of the “market basket.”
The continued deflation reflects ongoing economic trends, with both food and non-food prices registering declines on a Y-o-Y basis.
