Sri Lanka's inflation, as measured by the change in the Colombo Consumers' Price Index (CCPI), increased to 6.8% in February 2020 from 5.7% in January 2020, the Central Bank reported.

This was solely driven by the statistical effect of the low base prevailed in February 2019. Food inflation (Y-o-Y) stood at 14.7% in February 2020, while Non-food inflation (Y-o-Y) recorded at 2.8%.

The change in the CCPI measured on an annual average basis increased to 4.6% in February 2020 from 4.5% in January 2020.

The monthly change of CCPI recorded at 0.0% in February 2020. Setting off the price effects of items in the food category, which declined by 0.2%, the prices in non-food category increased by the same magnitude.

Within the Food category, prices of vegetables, rice, big onions, potatoes, sea fish and red onions recorded decreases in February 2020. However, prices of items in the Non-Food category recorded increases during the month owing to price increases of the items in Transportation (airline fair); Clothing and Footwear; and Recreation and Culture subcategories.

The core inflation, which reflects the underlying inflation in the economy, increased to 3.2% in February 2020 from 3.0% in January 2020 on year-on-year basis. However, annual average core inflation decreased to 5.1% in February 2020 from 5.3% in January 2020.