The Colombo Consumer Price Index (CCPI, 2021=100)1 based headline inflation (year-on-year, Y-o-Y) accelerated in January 2026 after remaining at the same level for three consecutive months. Accordingly, headline inflation (Y-o-Y) was recorded at 2.3% in January compared to 2.1% in December 2025, broadly in line with the Central Bank’s near-term projections. 

Food inflation (Y-o-Y) accelerated to 3.3% in January 2026 from 3.0% in December 2025, while Non-Food inflation (Y-o-Y) remained unchanged at 1.8% in January 2026 compared to the previous month. 

On a month-on-month basis, the CCPI recorded an increase of 0.59% in January. The Food category contributed 0.21 percentage points to this increase, while the Non-Food category contributed 0.39 percentage points. 

Meanwhile, core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, decelerated to 2.3% in January 2026 from 2.7% in December 2025. 

Inflation projections made at the monetary policy round in January 2026 indicate a gradual acceleration of inflation towards the target of 5% by the second half of 2026, with the support of appropriate policies