Sri Lankan inflation drops to 0.5 per cent in August

 Colombo, Aug 30: Headline inflation, as measured by the year-on-year change in the Colombo Consumer Price Index, has dropped to 0.5 per cent in August from 2.4 per cent in July, Sri Lanka’s Department of Census and Statistics said on Friday.

The department said the inflation in the food category dropped to 0.8 per cent in August from 1.5 per cent in July, whereas the non-food category inflation decreased to 0.4 per cent from 2.8 per cent.

However, the department said that the general price level increased by 91.1 per cent in August 2024, compared to 2021, the index reference year, Xinhua news agency reported. Inflation was at 69.8 per cent in September 2022, when the South Asian country experienced an economic crisis. The headline inflation is expected to be below the target in the forthcoming months and reach the 5 per cent target with appropriate policies in the medium term, the Central Bank said in its recent report.