The Colombo Consumer Price Index (CCPI, 2021=100) based headline inflation, which returned to positive territory in August 2025, continued its upward trajectory toward the Central Bank’s inflation target in September 2025.
Headline inflation (year-on-year) accelerated to 1.5% in September 2025, up from 1.2% in August, aligning with the Central Bank’s near-term projections. Food inflation rose to 2.9% from 2.0% over the same period, while non-food inflation slightly eased to 0.7% from 0.8%.
On a month-on-month basis, the CCPI increased by 0.17% in September, with food contributing 0.10 percentage points and non-food items adding 0.07 percentage points. Core inflation, which reflects underlying price trends, remained stable at 2.0% year-on-year.
The realised quarterly average headline inflation for Q3-2025 is consistent with the Central Bank’s projections, which indicate a gradual acceleration of inflation toward the 5% target, supported by appropriate policy measures.
