The Colombo Consumer Price Index (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) remained unchanged at 2.1% in December 2025. This was primarily supported by the favourable statistical base effect, despite a substantial month-on-month increase in prices in December 2025 due to Cyclone Ditwah.

Food inflation (Y-o-Y) remained unchanged at 3.0% in December 2025 compared to the previous month, whereas Non-Food inflation (Y-o-Y) accelerated to 1.8% in December 2025 from 1.7% recorded in November.

On a month-on-month basis, however, the CCPI recorded a notable increase of 1.26% in December 2025. The Food category contributed 1.25 percentage points to this increase, reflecting the supply-side disruptions caused by the adverse weather conditions, while the Non-Food category contributed marginally by 0.01 percentage points.

Meanwhile, core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, accelerated to 2.7% in December 2025 from 2.4% in November 2025.

Inflation projections made at the monetary policy round in November 2025 indicate a gradual acceleration of inflation towards the target of 5% in the period ahead, with the support of appropriate policies.

The Colombo Consumer Price Index (CCPI, 2021=100) is compiled by the Department of Census and Statistics (DCS) to indicate average changes in the prices of goods and services purchased by households in urban areas of the Colombo district.