Headline inflation in Sri Lanka remains negative for second month

The Central Bank of Sri Lanka’s latest projections reveal that headline inflation, measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100), remained in negative territory for the second consecutive month.

In October 2024, the economy saw a deflation rate of 0.8%, following the 0.5% deflation recorded in September 2024.

The non-food category experienced a marked increase in deflation, with Y-o-Y figures indicating a 1.6% decline in October, deeper than the 0.5% decrease seen in September.

However, the food category moved from deflation to inflation, posting a 1.0% increase in October after a 0.3% deflation in September.

The Central Bank’s projections highlight these contrasting trends within food and non-food categories, reflecting underlying shifts in consumer prices across different segments of the economy.

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