Non-food deflation accelerated to 6.1 per cent YoY in February from 4.7 per cent in January.
On a month-on-month basis, CCPI decreased by 0.21 per cent in February, a release from the Central Bank of Sri Lanka said.
Meanwhile, core inflation, which reflects the underlying inflation trends in the economy, decelerated further to 0.7 per cent YoY in February from 1.2 per cent in January.
The projections indicate that the prevailing deflationary environment is likely to continue in the forthcoming months, the release noted.
However, inflation is expected to turn positive thereafter, and gradually align with the targeted level of 5 per cent over the medium term, aided by appropriate policy measures, it added.
ALCHEMPro News Desk (DS)
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