Sri Lanka’s Deflation Slows in June – Inflation Set to Rise

Sri Lanka’s deflationary trend continued to ease in June 2025, signaling a potential shift toward positive inflation in the coming months, according to the latest data from the Central Bank of Sri Lanka.

The Colombo Consumer Price Index (CCPI) recorded a year-on-year (Y-o-Y) headline deflation of 0.6% in June, slightly lower than the 0.7% deflation observed in May.

The monthly CCPI increased by 0.9%, driven primarily by the Food category, which contributed 0.62 percentage points, while Non-Food items added 0.28 percentage points.

Notably, core inflation, which excludes volatile items and reflects underlying price trends, rose to 1.5% in June from 1.2% in May, indicating a gradual pickup in inflationary momentum.

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