CCPI in August 2025 shows deflationary period ending

Saturday, 30 August 2025 01:35 - - {{hitsCtrl.values.hits}}

The Central Bank said yesterday that following 11 consecutive months of deflation, headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100), returned to positive territory in August 2025, recording 1.2%, compared to 0.3% deflation in July 2025.

Food inflation (Y-o-Y) accelerated to 2.0% in August 2025 from 1.5% recorded in July 2025, while non-food inflation (Y-o-Y), which remained negative since September 2024, also turned positive, recording 0.8% in August 2025, compared to the 1.2% deflation in July 2025.

On a month-on-month basis, the CCPI declined by 0.38% in August 2025, for which the food category contributed -0.49 percentage points and the non-food category contributed 0.11 percentage points.

“Meanwhile, core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, accelerated to 2.0% in August 2025 from 1.6% in July 2025. The projections indicate a gradual acceleration of inflation in the period ahead, moving towards the target of 5%, with the support of appropriate policies,” the Central Bank said.