Sri Lanka's Inflation Remains Negative for Third Consecutive Month in November 2024

COLOMBO (News 1st) -

Sri Lanka's headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100), remained in negative territory for the third consecutive month, recording a deflation of 2.1% in November 2024.

The decline in inflation was largely driven by a slowdown in both food and non-food price categories.

Non-food inflation (Y-o-Y) further decelerated to -3.3% in November 2024, down from -1.6% in October.

Meanwhile, food inflation (Y-o-Y) also moderated, recording 0.6% in November compared to 1.0% in October.

On a month-on-month basis, the CCPI dropped by 0.25% in November 2024.

According to the latest projections of the Central Bank, it is expected that headline inflation will remain negative in the next few months, deeper than previously projected, mainly due to larger downward adjustments in energy prices and
reduction in volatile food prices.

However, inflation is expected to turn positive thereafter and gradually align with the targeted level of 5% over the medium term, aided by appropriate policy measures.

Sri Lanka had already experienced deflation in previous months, with inflation standing at -0.5% in September and -0.8% in October.