COLOMBO, July 31, 2025 —
Sri Lanka’s overall inflation rate, measured by the Colombo Consumer Price Index (CCPI) on a year-on-year basis, rose slightly to -0.3 percent in July 2025, compared to -0.6 percent in June, the Department of Census and Statistics reported on Wednesday.
The modest uptick reflects a continuing deflationary trend in the economy, albeit less pronounced than the previous month.
Food Inflation Sees Significant Decline
Food inflation notably slowed to 1.5 percent in July, down from 4.3 percent in June, driven by improved supply conditions and seasonal factors. The reduction in food prices contributed substantially to the overall moderation in consumer price movements.
Key food items such as vegetables, rice, and selected protein products recorded price stability or declines, easing the burden on consumers.
Broader Inflation Context
While food inflation eased, non-food prices remained subdued, maintaining an overall deflationary environment in other consumer categories, including transport, clothing, and housing-related expenses.
Analysts suggest the figures indicate a gradual easing of economic pressures but caution that inflation dynamics remain fragile amid external uncertainties and domestic fiscal adjustments.
Outlook
The Central Bank of Sri Lanka is expected to monitor these developments closely as it calibrates monetary policy to support economic stability. The ongoing moderation in food prices could help bolster consumer purchasing power, but sustainable recovery will depend on broader economic reforms and growth.
Further detailed inflation data is anticipated in coming reports to provide deeper insights into sectoral price movements.
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