Sri Lanka inflation rise to 3-year high in June 2026 to near CB’s upper target band
Sri Lanka’s overall rate of inflation, as measured by the Colombo Consumer Price Index (CCPI), rose to a three-year high of 6.8 percent in June 2026, near the Central Bank’s upper inflation target rate of 7 percent, data from the state statistics office showed.
The Central Bank had expected to reach its mid-term target of 5 percent much later than May, but analysts say the trickle-down impacts of the fuel price hike in the three months through end-June caused prices to rise.
The inflation increased from 5.5 percent in May.
The June 2026 inflation is the highest since June 2023, the data showed.
The island nation’s economy witnessed upward price adjustments after the government raised fuel prices by around 47 percent following a supply shortage due to Middle East escalation, amid higher global oil prices.
The widely-watched Colombo Consumer Price Index rose 4.3 points in June to 207.7 points from 203.4 points the previous month.
Both food commodities and non-food items contributed to the inflation in May, the data showed.
The CCPI recorded an increase of 2.1 percent in June compared to April 2026.
The state-owned Statistics office said the rise in June represents an increase in expenditure value of Rs. 3,945.26 in the market basket compared to Rs. 1,625.48 in the previous month.
“The month-on-month change was driven by an increase of 1.43% in Food items and an increase of 0.68% in Non-Food items,” the state-run Statistics Department said.
Under food items, the highest contributor to the increase was sea fish followed by vegetables, while under non-food items was Transport.
The Central Bank last month raised its Overnight Policy Rate by 100 basis points to curb demand-driven inflation, though analysts expect more tighten measure may needed to curb it.
