The Colombo Consumer Price Index (CCPI)-based year-on-year inflation declined from 2.3% recorded in January 2026 to 1.6% in February, reflecting continued easing of price pressures in the economy.
Food inflation saw a sharp slowdown during the month. On an annual basis, food inflation dropped significantly from 3.3% in January to just 0.2% in February, playing a key role in bringing down overall inflation.
However, non-food inflation accelerated to 2.3% in February compared to 1.8% in the previous month.
In its January 2026 Monetary Policy Review, the Central Bank projected that inflation is expected to gradually move towards the 5% target by the second half of 2026, supported by appropriate policy measures.
The latest statistics indicate sustained price stability, with easing food prices contributing substantially to the overall moderation in inflation in February.
