Sri Lanka’s inflation, as measured by the National Consumer Price Index (NCPI), showed a decrease in June 2023, recording a year-on-year 10.8%. This figure comes as a relief after the sharp surge in headline inflation, reaching 22.1% in May 2023, as reported by the Department of Census and Statistics (DCS). The latest report highlights changes in both food and non-food items contributing to the overall inflation rate.

A closer look at the numbers reveals notable fluctuations in the food and non-food groups on a yearly basis. In June 2023, the year-on-year inflation for the food group witnessed a significant drop to 2.5%, a substantial decline from the 15.8% recorded in May 2023. Similarly, the non-food group’s year-on-year inflation decreased to 18.3% in June 2023 from the previous 27.6% in May 2023.

Looking back at previous data, Sri Lanka faced a challenging period in March 2022, with inflation ranking as the second-highest in the world, according to Steve Hanke’s inflation chart. During that time, it was estimated that the country’s true inflation rate in March 2022 reached a staggering 132%.