Headline inflation, as measured by the year-on-year change in the Colombo Consumer Price Index decreased to 4.0% in August 2023 from 6.3% in July 2023 in line with the projections envisaged by the Central Bank in July 2023.
The Food deflation continued for the second consecutive month recording 4.8% in August 2023 from 1.4% in July 2023. Meanwhile, the Non-Food inflation decreased further to 8.7% in August 2023 from 10.5% in July 2023.
“The core inflation which reflects the underlying inflation in the economy, decreased to 4.6% in August 2023 from 5.9% in July 2023,” the Central Bank said.
“As a result of the policy measures taken thus far, and well anchored inflation expectations, inflation is expected to stabilise around mid-single digit levels over the medium term.”