Sri Lanka’s inflation, measured by the National Consumer Price Index (NCPI), rose to 0.7 per cent in July 2025. The Department of Census and Statistics, in a statement, said the NCPI for the month stood at 208.3 points, compared with July last year.
Prices had dipped in June, helped by lower food and electricity costs, but July saw a slight return to positive inflation. Meanwhile, the Colombo Consumer Price Index (CCPI), which tracks prices in the capital, showed (-0.3) per cent inflation in July, pointing to continued stability in urban areas.
The Central Bank of Sri Lanka has set an inflation target band of 4-6 per cent for 2025. In its latest policy outlook, it noted that inflation is expected to remain subdued in the coming months before moving gradually towards the target range.
While the current low levels offer relief to households, analysts caution that they also reflect weak demand across the economy. The return of stability contrasts with the runaway inflation that followed the 2022 economic crisis, underlining both the progress made and the challenges ahead in Sri Lanka’s recovery.
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