The Department of Census and Statistics has reported a notable decrease in Sri Lanka's overall rate of inflation in September 2023. According to the National Consumer Price Index (NCPI), the year-on-year inflation rate has dropped to 0.8%, down from 2.1% in August 2023.

This change in inflation rates indicates a significant easing of price increases on various consumer goods and services. The drop in the NCPI is seen as a positive development, as it may alleviate some of the financial pressures on the general public.

Interestingly, food inflation has also experienced a slight shift. In September 2023, food inflation increased to -5.2% from -5.4% in August 2023. This indicates that while food prices remain on a downward trend, the pace of decline has slowed.

The Director General of Census and Statistics, upon releasing the NCPI for September 2023, explained that the headline inflation, measured by the year-on-year change, had reached 0.8%. This marked a significant reduction from the inflation rate of 2.1% reported in August 2023.

Breaking down the contributions to inflation in September, the food group played a role in pushing inflation down by -2.4%, while the non-food group contributed positively with an increase of 3.2%.

Examining the month-on-month changes, the NCPI for September 2023 was reported at 203.5, up from 201.9 in August 2023. This signifies an increase of 1.6 index points or 0.8%. The monthly change is attributed to rises in both food items (0.41%) and non-food items (0.36%).

Furthermore, core inflation, which provides a more stable measure by excluding volatile items such as food, energy, and transport, dropped to 1.7% in September 2023 from the 4.1% reported in August 2023. This indicates that inflationary pressures within the Sri Lankan economy have significantly eased.