Sri Lanka's Consumer Price Index (CCPI)-based inflation, measured on a year-on-year (YoY) basis, has shown a significant drop from August's 4.0% to a mere 1.3%. While this might appear to be a positive development, month-on-month (MoM) inflation has risen by 0.9%, indicating that prices have increased compared to the previous month, despite the reduction in the YoY inflation figure.

This significant drop in YoY inflation has implications for consumers. For instance, a salary of Rs. 100,000 in January 2022 is now equivalent to just Rs. 64,807 in September 2023, compared to Rs. 65,387 in the previous month. This demonstrates the erosion of purchasing power faced by the average Sri Lankan.

Economists and experts suggest that as the inflation measurement moves away from the peak inflation figure observed in September 2022, the data from the coming months will provide a more meaningful reflection of the country's economic situation. These fluctuations in inflation rates have been a cause of concern, impacting the daily lives and finances of Sri Lankan citizens.