THE COST OF LIVING

LIVING COSTS EDGE HIGHER  

Key indicators show cost of living pressures returning after a brief pause

Respondents’ perceptions about the cost of living remained largely negative compared to the previous month: seventy-three percent of those surveyed believe that the cost of living has ‘highly’ or ‘moderately escalated’ over the past 12 months – a four point increase from December (69%).

Twenty-four percent of survey participants say that costs have either ‘stayed the same’ or ‘decreased,’ marking a four percentage point decline from the preceding month.

Expectations of a ‘highly escalating’ cost of living remain elevated with 21 percent of polled executives anticipating higher prices over the next 12 months – up two percentage points from December.

At the same time, 28 percent expect a ‘moderate escalation’ in their expenses – a one point decline from the previous month – while a third (33%) believe their spending ‘will remain the same,’ reflecting a two percentage point decline.

Only 13 percent feel that the cost of living ‘will decrease’ over the next 12 months – a one point increase from December.

When asked about their ability to purchase non-food items in the next 12 months, 57 percent of respondents said they ‘will not have a chance,’ marking a six point increase from the prior month.

And nearly a quarter (24%) expect their spending on non-food items to ‘remain the same’ (down 8%) while 14 percent (one point lower than in December) remain optimistic about their ability to afford such purchases.

– LMD

FOOTNOTE An index based on a monthly survey, the CLI aims to measure and understand perceptions regarding the cost of living as opposed to reported or official inflation.