The year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100)1 indicated a marginally lower rate of headline deflation, recording 0.6% in June 2025 compared to the deflation of 0.7% in May 2025.
Non-Food deflation (Y-o-Y) decelerated further to 2.8% in June 2025 from 3.3% in May 2025, while Food inflation (Y-o-Y) moderated to 4.3% in June 2025 from 5.2% recorded in May 2025.
On a month-on-month basis, the CCPI increased by 0.90% in June 2025, for which the Food category contributed 0.62 percentage points and the Non-Food category contributed 0.28 percentage points. Meanwhile, core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, accelerated to 1.5% in June 2025 from 1.2% recorded in May 2025.
The realised quarterly average headline inflation for Q2-2025 is in line with the Central Bank’s projections.
The projections for the period ahead show the continuation of the gradual pickup in inflation. Accordingly, inflation is expected to turn positive in the coming months and gradually align with the inflation target of 5%, with the support of appropriate policies
