But the moving average of the index which smoothens out seasonal fluctuations continued to move up to 15.8 percent from 14.8 percent a month ago.
"These price decreases can be mainly attributed to higher supply of locally produced agricultural consumer goods, specially the vegetables to the main markets in Colombo City due to seasonality," the Department of Census and Statistics said.
Sri Lanka's inflation rose in from April 2006 due to heavy money printing to finance the budget.
But the central bank has pledged to limit money printing in 2007 and tightened monetary policy in December.
Last week the central bank raised policy rates by 50 basis points. At today's treasury bill action rates edged up by 21 basis points as the monetary authorities kept off purchasing bills.
Authorities are expecting inflation to ease over the next two months.