Sri Lanka's key inflation index up 8.3% year-on-year in October

Sri Lanka’s Colombo Consumer Price Index recorded an 8.3% annual increase in October, up from 8% in September, Business Recorder reported, citing the Statistics Department. The measure follows prices in the capital and is used as an early signal of wider national inflation. Food-price growth edged up to 8.8% from 8.7%, while inflation excluding food reached 8%, compared with 7.7% a month earlier.

The report says inflation has remained at a three-year peak since July, with higher energy costs linked to the Iran war identified as a major factor. The Central Bank of Sri Lanka targets inflation of 5% and anticipates a gradual slowdown after next March, but left interest rates unchanged following a surprise 100 bps increase in May. The government is scheduled to present its 2027 budget on November 12.