Retail inflation rose again in August after falling for nine months, reaching 2.07%

Retail inflation rose marginally to 2.07% in August, from 1.61% in the previous month. The main reason behind this is the increase in the prices of vegetables, meat, and fish. This was said in the government data released on Friday. Inflation based on the Consumer Price Index (CPI) was 3.65% in August 2024. After declining for nine consecutive months, retail inflation has once again shown an increase.

According to data released by the National Statistical Office (NSO), annual inflation during August 2025 was (-) 0.69% as compared to August 2024.

"The increase in headline inflation and food inflation during the month of August 2025 is mainly due to the increase in inflation in vegetables, meat and fish, oils and fats, personal care and eggs," the NSO said. The government has directed the Reserve Bank to ensure that inflation remains at 4 per cent, with a margin of 2 per cent on either side.