In Sri Lanka, headline inflation has risen to positive after remaining in negative territory for 11 months. Central Bank of Sri Lanka (CBSL) reported that inflation, measured by the Colombo Consumer Price Index (CCPI), rose to 1.2% in August 2025. In July, the index had recorded a deflation of 0.3%.
Food inflation increased to 2.0% from 1.5% in July, while non-food inflation, which had remained negative since September 2024, turned positive at 0.8%, compared to -1.2% in July.
On a month-on-month basis, the CCPI declined by 0.38% in August, mainly due to falling food prices. Core inflation, reflecting underlying trends in the economy, accelerated to 2.0% from 1.6% in July. CBSL projections indicate a gradual rise in inflation toward the 5% target, supported by policy measures.
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