Food Prices Cool as Non-Food Deflation Eases in Colombo Consumer Index
Sri Lanka’s overall inflation, as measured by the Colombo Consumer Price Index (CCPI), registered a slight uptick in June 2025, moving to -0.6% year-on-year (y-o-y) compared to -0.7% in May, according to the latest figures from the Department of Census and Statistics.
The rise in the headline inflation figure comes amid moderating food prices and a gradual easing of deflationary pressures in the non-food sector. The food group inflation cooled to 4.3% y-o-y in June, down from 5.2% in May, suggesting a slowdown in price increases for essential consumer goods such as rice, vegetables, and meats.
On the other hand, the non-food category, which includes housing, transport, education, and healthcare, continued to reflect deflationary trends, although at a slower pace. Non-food inflation improved to -2.8% in June, compared to -3.3% in May, signaling a gradual return to price stability in key sectors of the urban economy.
While the overall inflation rate remains in negative territory, the marginal increase in June reflects a slow recovery in domestic demand and could signal the early stages of normalization after several months of deflation. Economists will be watching closely for sustained trends, particularly in the second half of the year, as policy and seasonal factors begin to influence prices more significantly.