Colombo district inflation decelerates to 1.3% in September

• Food deflation continues for third consecutive month
• Core inflation down to 1.9%, from 4.6% in August

Headline inflation, as measured by the year-on-year (YoY) change in the Colombo Consumer Price Index (CCPI), decelerated to 1.3 percent in September 2023, from 4.0 percent in August 2023, the Census and Statistics Department said. 
The Central Bank said the decline in inflation is mostly in line with the projections envisaged in July. The CCPI remains the Central Bank’s preferred inflation gauge. 

Food deflation continued for the third consecutive month, recording 5.2 percent in September 2023, from 4.8 percent in August 2023. 
Non-food inflation decreased further to 4.7 percent in September 2023, from 8.7 percent in August 2023. 
The monthly change of the CCPI recorded at 0.88 percent in September, due to the price increases of 0.18 percent observed in the items of the food category and 0.7 percent recorded in the items of the non-food category. 

Core inflation, which reflects the underlying inflation in the economy, decreased to 1.9 percent in September, from 4.6 percent in August. 
“As envisaged, inflation is expected to stabilise around mid-single-digit level over the medium term, aided by appropriate policy measures alongside well-anchored expectations,” the Central Bank said.