The overall rate of inflation in Sri Lanka, as measured by the National Consumer Price Index (NCPI), decreased to -4.0% in January 2025 on a year-over-year (Y-o-Y) basis, compared to -2.0% in December 2024, according to the latest data from the Department of Census and Statistics.
Food inflation also saw a decline, dropping to -2.5% in January 2025 from -1.0% in December 2024. Meanwhile, non-food inflation also recorded a significant decrease, falling to -5.2% in January 2025 from -2.9% in the previous month.
The NCPI for all items in January 2025 stood at 206.4, reflecting an increase of 1.8 index points (0.88%) compared to December 2024, when it was recorded at 204.6. This rise translates to an increase in expenditure value of Rs. 913.08 in the “market basket.”
The continued deflation indicates a decline in consumer prices, which may have implications for household spending and economic policy decisions in the coming months.
