Colombo Consumer Price Index drops to 5.9% in February

The Headline inflation, as measured by the year-on-year (YoY) change in the Colombo Consumer Price Index (CCPI, 2021=100)1 decreased to 5.9% in February from 6.4% in January 2024. 

The Central Bank said the increase in the headline inflation is mostly in line with its projections. 

It said the Food inflation (YoY) increased to 3.5% in February from 3.3% in January 2024, while the Non-Food inflation (YoY) decelerated to 7% in February from 7.9% in January 2024. 

CBSL also said the monthly change of CCPI recorded -0.05% in February due to the combined effect of price decreases of 0.67% observed in the items of Food category and price increases of 0.62% observed in the items of Non-Food category.

The core inflation (YoY), which reflects the underlying inflation in the economy, increased to 2.8% in February from 2.2% in January 2024. 

The Central Bank said inflation is expected to remain above the target in the near term mainly driven by the recent tax adjustments, before stabilising around the targeted level of 5% over time, supported by well-anchored inflation expectations and appropriate policy measures.