THE COST OF LIVING
THE LIVING COST CONUNDRUM
The Cost of Living Index eases further while inflation picks up pace again!
The PepperCube Cost of Living Index (CLI) fell to 62.1 in September, marking a 2.8 point decline from August’s 64.9 and offering a modicum of relief to consumers.
In contrast, the Colombo Consumer Price Index (CCPI) extended its upward trajectory for the second consecutive month, following 11 months of deflation, recording a year on year rate of inflation of 1.5 percent – compared to 1.2 percent in August.
Respondents’ perceptions about the cost of living remained muted in line with the month prior. Seventy-eight percent believe the cost of living has ‘highly’ or ‘moderately escalated’ over the past 12 months (unchanged from August).
Nineteen percent of survey participants say that costs have either ‘stayed the same’ or ‘decreased,’ reflecting a three point increase from the preceding month.
And expectations of a ‘highly escalating’ cost of living continue to ease with 18 percent of polled executives anticipating higher prices over the next 12 months – a six percentage point decline from August.
Meanwhile, 29 percent of respondents expect a ‘moderate escalation’ in their expenses – up eight points from the month prior. And nearly a third (32%) anticipate their spending ‘will remain the same,’ which represents a five point increase from a month ago.
Additionally, 14 percent believe the cost of living ‘will decrease’ over the next 12 months – a three percent decline compared to the month prior.
And nearly half (46%) of the survey population say they ‘will not have a chance’ to purchase non-food items in the next 12 months, marking a six percentage point decrease compared to August.
And finally, just over three in 10 (31%) expect their spending to ‘remain the same,’ reflecting a four point increase, while 16 percent (no change from the prior month) are optimistic about being able to afford non-food products.
