The Colombo Consumer Price Index (CCPI, 2021=100)[1] based headline inflation (year-on-year, Y-o-Y) decelerated in February 2026. Accordingly, headline inflation (Y-o-Y) was recorded at 1.6% in February 2026 compared to 2.3% in January 2026.

Food inflation (Y-o-Y) decelerated to 0.2% in February 2026 from 3.3% in January 2026, while Non-Food inflation (Y-o-Y) accelerated to 2.3% in February 2026 from 1.8% in January 2026.

On a month-on-month basis, the CCPI recorded a decrease of 0.85% in February 2026. The decrease was mainly driven by the Food category, which contributed -0.86 percentage points, largely owing to the reduction in prices of vegetables and green chillies, while the Non-Food category contributed 0.01 percentage points.

Meanwhile, core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, decelerated to 2.1% in February 2026 from 2.3% in January 2026.

Inflation projections made at the monetary policy round in January 2026 indicate that inflation will gradually move towards the target of 5% by the second half of 2026, with the support of appropriate policies.

[1] 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.