The Colombo Consumer Price Index (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) increased to 8.3% in October 2026 from 8.0% in September 2026. Food inflation (Y-o-Y) marginally increased to 8.8% in October 2026 from 8.7% in September 2026, and non-food inflation (Y-o-Y) increased to 8.0% from 7.7% over the same period.
On a month-on-month basis, the CCPI increased by 0.35% in October 2026. This increase was mainly driven by the non-food category, which contributed 0.33 percentage point, largely owing to the increase in prices of Restaurant and Hotels category, and the food category contributed a marginal 0.02 percentage point.
Meanwhile, core inflation (Y-o-Y) accelerated to 5.6% in October 2026 from 5.4% in September 2026.
According to the inflation projections made during the September 2026 monetary policy round, headline inflation is projected to remain in high single digits through Q1-2027, before easing towards the 5% target thereafter. Inflation is expected to remain around the target over the medium term supported by appropriate policy measures. These projections are conditional, among other assumptions, on the expectation that the effects of the tensions in the Middle East and their spillovers will gradually dissipate.
