National inflation hits over three-year high 7.2% in July

Saturday, 22 August 2026 00:49 - - {{hitsCtrl.values.hits}}

Non-food inflation remains at 9.2%; food inflation rises to 4.9%

National inflation accelerated to an over three-year high of 7.2% year-on-year (YoY) in July 2026 from 6.5% in June, as non-food prices remained elevated, according to the latest data from the Department of Census and Statistics (DCS).

The July reading was the highest since June 2023, while the National Consumer Price Index (NCPI) rose 0.5% month-on-month (MoM) to 223.4 points from 222.3 points in June, its highest level under the rebased series. The monthly increase amounted to 1.1 index points and corresponded to an increase of Rs.564.05 in the expenditure value of the market basket.

The DCS data showed non-food inflation at 9.2% YoY in July, marginally lower than 9.3% in June, but substantially above food inflation. Food inflation accelerated to 4.9% from 3.3% in June. Overall inflation rose from 5.4% in May and 4.7% in April to 6.5% in June and 7.2% in July.

On a monthly basis, the 0.5% increase in the NCPI was driven mainly by a 0.42% contribution from non-food items and a 0.08% contribution from food. Housing, water, electricity, gas and other fuels contributed 0.18% to the monthly increase, while education contributed 0.07%, health and miscellaneous goods and services 0.04% each, restaurants and hotels 0.03%, and transport 0.02%.

Within food, upward pressure came from green chillies, dried fish, milk powder, eggs and dried chillies, among other items. These increases were partly offset by declines in vegetables, coconuts, limes, rice, Mysore dhal, coconut oil, sugar and chicken.

Non-food prices increased 0.7% MoM in July, with the index rising to 205.6 from 204.1 in June.

Food prices edged up 0.2% to an index level of 250.9 from 250.5. Overall, the NCPI rose to 223.4 from 208.3 in July 2025, underpinning the 7.2% annual inflation rate.

On a YoY basis, food commodities contributed 2.21 percentage points to the July inflation rate, while non-food items contributed 5.04 percentage points.

The DCS said the non-food contribution was led by transport at 2.23 percentage points and housing, water, electricity, gas and other fuels at 1.21 percentage points. Restaurants and hotels contributed 0.50 percentage points, education 0.35 percentage points, miscellaneous goods and services 0.26 percentage points and health 0.17 percentage points.

The NCPI covers the entire country and was rebased to 2021=100 from the previous 2013=100 reference period.

The national consumer basket comprises 485 items representing household consumption expenditure across Sri Lanka.