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

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

On a month-on-month basis, the CCPI recorded a decrease of 0.85% in February. 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 (YoY), which reflects the underlying inflation trends in the economy, decelerated to 2.1% in February from 2.3% in January.

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