Attachments
Headline inflation rose to 6.98% in February, up from 5.80% in January, showing a faster increase in the cost of living. Prices also increased slightly month‑to‑month (0.27%). Food inflation was 5.8% higher than last year; rice prices stayed stable. Pulse prices increased slightly because lower production reduced local availability. The Terms of Trade improved by 1.5% compared to last month but remain 21% worse than a year ago, indicating households still have significantly reduced purchasing power.
HIGHLIGHTS
• In February, the Consumer Price Index1 (CPI)-based Annual Headline Inflation2 reached 6.98 percent (YoY), up from 5.80 percent (YoY) in January, indicating the general cost of living is rising at a faster pace. Month on Month CPI increased by 0.27 percent in February 2026 compared to January 2026, showing things became marginally more expensive in just one month.
• Annual food inflation increased by 5.8 percent compared to February 2025, meaning people paid nearly 6% more for the same food items compared to last year. Wheat and fine wheat flour prices rose slightly in February compared to January, while subsidized wheat flour registered a slight decrease. Wheat and fine wheat flour prices were higher mainly due to tightened domestic availability and low market stocks during lean season. Rice prices remained stable.
• Prices increased slightly for pulses mainly because of decline in production which reduces local availability and tightens the supply.
• Terms of Trade (ToT) increased (improved) in February by 1.5 percent over the past month, while it is 21 percent lower (worse) than a year ago, indicating less purchasing power.