Consumer prices in the Colombo district fell by 2.0 percent over the 12 months leading up to April 2025, although at a slower rate compared to the 2.6 percent decline observed through March.
This reduction signals the easing of deflationary conditions, as the country nears its first period of positive inflation after eight months of falling prices.
On a monthly basis, consumer prices slipped by 0.2 percent from March to April, driven by softer prices in both food and non-food categories. Food prices, in particular, declined by 0.3 percent from March to April, a smaller decrease compared to the 1.3 percent drop seen between February and March. The price declines in many food items outweighed the increases in others, including rice, gram, sprats, and infant milk powder. The most significant price reductions were observed in coconuts, green chilies, big onions, and fresh fruits—items that had been persistently high.
However, there were notable price increases for fresh fish, milk powder, coconut oil, and vegetables during April.
Despite the monthly price drop, annual prices rose by 1.3 percent, up from a 0.6 percent increase in March, signaling an acceleration in price growth. Non-food prices, meanwhile, fell by 3.6 percent compared to the previous year, with a 0.1 percent decline seen on a monthly basis. This decline was influenced by lower petrol prices and reduced costs in household equipment and maintenance.
On the other hand, clothing, footwear, and LP gas prices saw increases in April. Core prices, which exclude the often-volatile food, energy, and transport categories, rose by 0.8 percent in April, up slightly from 0.7 percent in March.
The Central Bank, in its March meeting, left its key Overnight Policy Rate unchanged at 8.00 percent, anticipating that inflation will turn positive in the second half of the year and align with the bank’s medium-term target of 5.0 percent by the end of 2025.
