CCPI-based headline inflation decreased to 1.3-pct in September 2023

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100)1 decreased to 1.3% in September 2023 from 4.0% in August 2023. The decline in the headline inflation is mostly in line with the projections envisaged by the Central Bank of Sri Lanka (CBSL) in July 2023.

The Food deflation (Y-o-Y) continued for the third consecutive month recording 5.

2% in September 2023 from 4.8% in August 2023. Meanwhile, the Non-Food inflation (Y-o-Y) decreased further to 4.
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7% in September 2023 from 8.7% in August 2023.

As envisaged, inflation is expected to stabilise around mid-single digit level over the medium term, aided by appropriate policy measures alongside well-anchored expectations.

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