Page 22 - Policy & Economic Report - July 2025

POLICY AND ECONOMIC
ROEILPO&RGTAS MARKET

Food inflation also registered a noticeable increase during the month. The Consumer Food Price Index
(CFPI) inflation rose to 5.32 per cent in June from 4.78 per cent in May, with rural food inflation at 5.45
per cent and urban food inflation at 5.09 per cent. The persistence of food price pressures continued to
be the principal contributor to the rise in headline inflation during the month. At the same time, housing
inflation remained relatively moderate at 2.10 per cent, indicating that inflationary pressures continued
to be concentrated primarily in food-related categories rather than across the broader consumption
basket.
Figure 8: Trends in CPI (General) and Consumer Food Price Inflation (CFPI), May–June 2026

Source: Ministry of Statistics and Programme Implementation - National Statistics Office
Housing inflation remained relatively moderate during June 2026, with the year-on-year inflation rate
recorded at 2.10 per cent (provisional). Rural housing inflation stood at 2.66 per cent, while urban housing
inflation was 1.90 per cent, indicating that housing costs continued to remain well contained despite the
broader increase in retail inflation. The relatively subdued housing inflation suggests that price pressures
remained concentrated in food and selected services rather than being broad-based across all
components of the consumption basket.
Figure 9: Inflation Rates Across Major CPI Groups (June 2026)

Source: Ministry of Statistics and Programme Implementation - National Statistics Office

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