According to reports submitted by the Department of Demographics and Statistics, as well as the Department of Humanities and Statistics, Professor Wasantha Athukorala, Director of the Humanities and Statistics Division at the University of Peradeniya, has provided a detailed analysis of the country’s inflation trends.
Inflation in the country surged by approximately 52% in 2022 but showed a significant improvement in 2023, with an increase of only 6%. By 2024, inflation had decreased further, recording a reduction of about 5%.
Monthly inflation data for 2024 reveals further insights: in March, the rate stood at -1.9%, while April recorded -0.8%, and May saw a marginal decrease to -0.06%. Inflation turned slightly positive at 0.08% in June but remained negative for five consecutive months from July to November. Notably, the Colombo Consumer Price Index reported a positive monthly inflation rate of 1.02% in November 2024.
The National Consumer Price Index mirrored similar trends, with negative monthly inflation recorded for eight months in 2024. This indicates a gradual economic decrease in the prices of goods and services.
However, despite this downward trend, the reduction in inflation has been minimal and has not translated into a significant decline in the cost of living for the general public. Professor Athukorala emphasized that low-income families continue to face severe hardships, as the prices of many essential goods remain largely unaffected.
Reported by: Premalal Wijeratne
