Inflation down sharply to 12% in June

Sri Lanka’s official headline inflation as measured by the Colombo Consumer Price Index (CCPI) on a year-on-year (YoY) basis eases to 12 percent in June, largely on higher base effects, last year.

The inflation reading in the month of May was 25.2 percent.

The food inflation in June plunged to 4.1 percent from 21.5 percent in May while non-food inflation decelerated to 16.2 percent from 27 percent.

Sri Lanka’s inflation has been coming down sharply from April largely due to higher base effects, last year, and also due to improvements seen in the country’s domestic foreign exchange market amid increased tourism and remittances inflows.