Monday, June 9, 2025

Deflation continues to ease in May

by damith
June 8, 2025 1:05 am 0 comment 10 views

The easing of deflationary conditions continued in May in line with the Central Bank’s near-term projections.

The year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100) reflected a slower pace of headline deflation at 0.7% in May 2025 compared to the deflation of 2.0% recorded in April 2025.

Non-Food deflation (Y-o-Y) decelerated further to 3.3% in May 2025 from 3.6% in April 2025. Meanwhile, Food inflation (Y-o-Y) accelerated to 5.2% in May 2025 from 1.3% recorded in April 2025. On a month-on-month basis, the CCPI increased by 0.82% in May 2025, for which the Food category contributed by 0.88 percentage points and the Non-Food category contributed by -0.06 percentage points. Core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, accelerated to 1.2% in May 2025 from 0.8% recorded in April 2025.

Inflation is expected to turn positive in early third quarter of 2025 and gradually align with the inflation target of 5%, with the support of appropriate policies.

The Colombo Consumer Price Index (CCPI, 2021=100) is compiled by the Department of Census and Statistics (DCS) to indicate average changes in the prices of goods and services purchased by households in urban areas of the Colombo district.

You may also like

Leave a Comment

lakehouse-logo

The Sunday Observer is the oldest and most circulated weekly English-language newspaper in Sri Lanka since 1928

[email protected] 
Newspaper Advertising : +94777387632
Digital Media Ads : 0777271960
Classifieds & Matrimonial : 0777270067
General Inquiries : 0112 429429

Facebook Page

@2025 All Right Reserved. Designed and Developed by Lakehouse IT Division