The Colombo Consumer Price Index1 (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) remained marginally above the target in May 2026, reflecting the impact of upward adjustments to domestic energy prices amidst the ongoing conflict in the Middle East. Accordingly, headline inflation (Y-o-Y) was recorded at 5.5% in May 2026 compared to 5.4% in April 2026.
Non-Food inflation (Y-o-Y) accelerated to 7.8% in May 2026 from 6.8% in April 2026, contributing to the increase in headline inflation. Meanwhile, Food inflation (Y-o-Y) decelerated to 0.9% in May 2026 from 2.8% in April 2026.
On a month-on-month basis, the CCPI recorded an increase of 0.9% in May 2026. This increase was driven by the Non-Food category, which contributed 0.6 percentage points, largely owing to the increase in prices of the Housing, Water, Electricity, Gas, and Other Fuels (L.P. Gas) and Transport (Petrol) sub-categories, while the Food category contributed 0.3 percentage points.
