The headline inflation rate, as measured by the Colombo Consumer Price Index (CCPI, 2021=100), held steady at 8.0% in September 2026, showing no change from the previous month of August 2026.
In contrast, food inflation on a year-on-year basis rose to 8.7% in September 2026, up from 8.5% in August 2026. Non-food inflation, however, remained stable at 7.7% for the same period.
When evaluating the month-on-month changes, the CCPI experienced a slight rise of 0.19% in September 2026. This increase was largely influenced by the food sector, which accounted for a 0.15 percentage point rise due to higher prices of fresh fruits and big onions. The non-food sector contributed an additional 0.04 percentage points, primarily driven by an uptick in the education sub-category.
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Additionally, core inflation, which excludes volatile items, climbed to 5.4% year-on-year in September 2026, up from 5.1% in August 2026.
The average inflation rate for the third quarter of 2026 aligned with the Central Bank’s recent forecasts. Based on the monetary policy discussions held in September 2026, it is anticipated that headline inflation will remain in the high single digits until the first quarter of 2027, after which it is expected to gradually approach the 5% target.
