Headline Inflation based on the National Consumer Price Index (NCPI) recorded at 22.1% in May, compared to 33.6% in April 2023; Food Inflation decreased to 15.8% in May, from 27.1% in April 2023.

In 2022 March, Sri Lanka’s inflation was the 2nd highest in the world according to the Steve Hanke’s inflation chart. It was estimated that Sri Lanka’s true inflation in 2022 March was 132%.

Decreases in food index values were reported for Fresh fruits (0.22%), Milk powder (0.14%), Rice (0.07%), Coconuts (0.04%), Chili powder (0.04%), Coconut oil 0.03%), Bread (normal) (0.02%), Eggs (0.02%), Green chilies (0.02%), Dried chilies (0.01%), Turmeric powder (0.01%), Cowpea (0.01%) and Red onions (0.01%).

The increases in index values were reported for Fresh fish (0.40%), Vegetables (0.40%), Sugar (0.09%), Chicken (0.06%), Mysore dhal (0.03%), Potatoes (0.03%), Ginger (0.02%), Garlic (0.02%), Big onions (0.01%), Limes (0.01%), Dried fish (0.01%) and Canned fish (0.01%).

The decreases in index values of non-food groups in May 2023 compared to the previous month was mainly due to the price decreases in groups of items ‘Alcoholic Beverages, Tobacco and Narcotics” (Bulathwita) (0.01%), ‘Housing, Water, Electricity, Gas and Other fuels’ (Materials for the Maintenance and LP Gas) (0.10%), “Furnishing, Household equipment and Routine household maintenance'(0.01%) ,’Transport’ (Petrol and Diesel) (0.15%) and ‘Miscellaneous Goods and Services’ (Toilet soap) (0.01%). However, price increases in groups of items were reported for ‘Clothing and Footwear’ (0.03%) and “Recreation and Culture” (0.03%). Further, very slight price increase was reported in the group of ‘Restaurants and Hotels’. Meanwwhile, the price indices of ‘Health’, ‘Education’ and ‘Communication’ groups remained unchanged during the month.