Business

Colombo Inflation Rises in May as Food Prices Surge


CCPI shows easing deflation trend with sharp uptick in food inflation

Sri Lanka’s headline inflation, as measured by the Colombo Consumer Price Index (CCPI), climbed in May, showing signs of easing deflation. The year-on-year (y-o-y) inflation rate rose to -0.7% in May, up from -2.0% recorded in April, according to the latest figures released by the Department of Census and Statistics.

This shift was largely driven by a notable rise in food prices. The food group’s y-o-y inflation jumped to 5.2% in May, compared to just 1.3% in April, reflecting growing cost pressures on essential consumer goods.

Although the overall inflation rate remains in negative territory, the upward trend signals a reversal in deflationary conditions seen in recent months. Analysts suggest that continued increases in food prices could push inflation back into positive territory in the coming months.