Colombo consumer prices decline 2.0% in April

The consumer prices in the Colombo district fell by another 2.0 percent in the 12 months to April 2025, albeit at a slower pace from 2.6 percent seen through March. 

This is as the deflationary conditions are dissipating, as the country is getting closer to see its first positive inflation after eight months of falling prices.

The prices measured on a monthly basis slipped too by 0.2 percent from March to April, due to the softening prices seen in both food and non-food categories.

The food prices fell by 0.3 percent from March to April, easing from a decline of 1.3 percent between February and March, as the price declines in many varieties of food commodities more than offset the price increases in others.

The prices of rice have continued to decline and so have the prices of gram, sprats, infant milk powder and the likes. However, the biggest declines in the prices were seen in commodities such as coconuts, which have remained high in prices for a prolonged period and also of green chilies, big onions and fresh fruits.

The prices of fresh fish, milk powder, coconut oil and vegetables rose the most during April over March.

Despite the monthly decline in the prices, the prices measured annually rose by 1.3 percent, accelerating from a 0.6 percent increase seen through March 2025.

Meanwhile, the non-food prices fell by 3.6 percent from a year ago while the prices measured monthly fell by 0.1 percent.

This was coming from the April cut in petrol prices and the decline in the prices of household equipment and routine household maintenance.

The prices of clothing and footwear and LP gas rose in April.

Meanwhile, the so-called core prices, measured stripping out the often-volatile food, energy and transport, rose by 0.8 percent in April, from 0.7 percent in March.

The Central Bank in March left its key policy rate, the Overnight Policy Rate, unchanged at 8.00 percent, as it believes inflation would turn positive from the start of the second half of this year, before aligning with its medium-term target of 5.0 percent by the year end.