Inflation Falls to 4% in Sri Lanka, Central Bank Reports Significant Decrease

The Central Bank of Sri Lanka announced today that the inflation rate, as measured by the Colombo Consumer Price Index (CCPI), has fallen to 4% in August 2023. This significant decrease comes on the heels of a 6.3% inflation rate reported just the previous month in July 2023.

The drop in inflation rates is mainly attributed to a noteworthy decline in food prices. Food prices, which account for a substantial portion of household expenses, have experienced a remarkable deflation of 4.8% in August 2023, compared to a much milder deflation rate of 1.4% in July 2023. This substantial shift in the food price index has played a pivotal role in the overall reduction of inflation.

Economists and financial experts had been closely monitoring Sri Lanka's inflationary trends in recent months, as high inflation rates can lead to increased living costs and economic instability.