The Colombo Consumer Price Index (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) accelerated in April 2026 reflecting the spillovers from the ongoing war in the Middle East, particularly the significant upward adjustments in domestic energy prices. Accordingly, headline inflation (Y-o-Y) was recorded at 5.4% in April 2026 compared to 2.2% in March 2026.
Food inflation (Y-o-Y) accelerated to 2.8% in April 2026 from 0.7% in March 2026. Non-Food inflation (Y-o-Y) accelerated to 6.8% in April 2026 from 2.9% in March 2026, contributing significantly to the increase in headline inflation.
On a month-on-month basis, the CCPI recorded an increase of 2.99% in April 2026. This increase was driven by the Non-Food category, which contributed 2.43 percentage points, largely owing to the increase in prices of the Transport sub-category, while the Food category contributed 0.56 percentage points.
Meanwhile, core inflation (Y-o-Y) also accelerated to 3.8% in April 2026 from 2.5% in March 2026.
The low level of inflation relative to the target of 5% that prevailed until March 2026 provided space to accommodate the impact of high energy prices and their spillovers on inflation. Amid the fluid nature of the prevailing war in the Middle East and its wide-ranging implications across both global and domestic economic activity, the inflation outlook is subject to elevated uncertainty. Despite the possible supply-driven movements in the near term, based on currently available information and assumptions, inflation is expected to remain around the target over the medium term, with the support of appropriate policies.
