Inflation on an annual average basis in February 2016 was 2.6 percent.

The Year-on-Year inflation of Food Group has increased from ‐4.2 percent in January 2016 to ‐0.6 percent in February 2016 and Non‐food Group also increased by 2.2 percent to 3.7 percent during this period. This increase of inflation in February 2016 was mainly due to elimination of effect of price reduction of few essential food items, L.P. Gas, Kerosene oil, Petrol, Diesel and Bus Fare in Interim Budget Proposal implemented by the Government in February 2015.

The NCPI for all items for the month of February 2016 decreased by 1.1 percent to 110.8 in February 2016 compared to 112.0 recorded for January 2016. The decrease in index was due to the value change decrease of food items by 1.22 percent and value change increase of non‐food items by 0.11 percent.

Since the Colombo Consumer's Price Index (CCPI), prepared by the Department of Census and Statistics for the calculation of changes in the price level and inflation, only depicts the price changes in Colombo municipal area, the Department in November 2015 introduced the National Consumer Price Index.

NCPI will have weights based on consumer spending in 2012/13, and will reflect new methods consistent with international best practices.