CCPI-based headline inflation accelerates in August 2026
The Colombo Consumer Price Index (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) increased to 8.0% in August 2026 from 7.3% in July 2026, primarily due to the statistical base effect in food inflation. Meanwhile, food inflation (Y-o-Y) increased to 8.5% in August 2026 from 6.3% in July 2026, contributing mainly to the increase in headline […]
In August 2026, the Colombo Consumer Price Index (CCPI) recorded an acceleration in headline inflation, rising to 8.0% from 7.3% in the previous month. This surge was primarily attributed to the statistical base effect in food inflation, with food prices climbing to 8.5% year-on-year from 6.3% in July. Non-food inflation, on the other hand, moderated to 7.7% from 7.8% in the same period.
On a month-over-month basis, the CCPI saw a 0.28% increase, largely driven by the food category, which alone added 0.20 percentage points to the inflation rate, primarily due to a rise in the cost of Milk Powder. The non-food sector contributed a relatively minor 0.07 percentage point increase. Core inflation also accelerated to 5.1% in August, up from 4.4% in July.
While inflation projections from the monetary policy round in July 2026 foresee headline inflation staying above the 5% target in the short term, they anticipate a gradual easing and stabilization around the target over the medium term, contingent on the assumption that Middle East tensions and their spillover effects remain temporary and wane gradually.
Written by urgent.news from The Island Sri Lanka's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
