The Central Bank of Sri Lanka has reported that headline inflation, based on the Colombo Consumer Price Index (CCPI, 2021=100), entered negative territory in September 2024, marking a deflation of 0.5% year-on-year (Y-o-Y). This is the first time since September 2015 that inflation has turned negative.

In the food category, a deflation of 0.3% was recorded in September 2024, a shift from the 0.8% inflation seen in August 2024. Similarly, the non-food category experienced a deflation of 0.5% in September, compared to a 0.4% inflation rate the previous month.

The deflation signals a significant shift in price trends, with both food and non-food categories contributing to the overall decrease in inflation.