Headline Inflation Accelerated Towards Target

CCPI based Headline Inflation Accelerated Towards the Target in September 2025

by Staff Writer 01-10-2025 | 9:20 AM

COLOMBO (News 1st) - The Colombo Consumer Price Index (CCPI, 2021=100)1 based headline inflation (year-on-year, Y-o-Y), which returned to positive territory in August
2025, continued its upward trend toward the inflation target in September 2025. 

Accordingly, headline inflation (Y-o-Y) accelerated to 1.5% in September 2025 from 1.2% in August 2025, in line with the Central Bank’s near-term projections.

Food inflation (Y-o-Y) accelerated to 2.9% in September 2025 from 2.0% recorded in August 2025. Non-Food inflation (Y-o-Y) decelerated marginally to 0.7% in September 2025 from 0.8% recorded in August 2025.

On a month-on-month basis, the CCPI increased by 0.17% in September 2025, for which the Food category contributed 0.10 percentage points and the Non-Food category contributed 0.07 percentage points.

Meanwhile, core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, remained unchanged at 2.0% in September 2025.

Realised quarterly average headline inflation for Q3-2025 is in line with Central Bank’s projections. The latest projections show a gradual acceleration of inflation in the period ahead towards the target of 5%, with the support of appropriate policies.

Source: CBSL