THE COST OF LIVING

COSTS SURGE ON DUAL FRONTS  

Rising cost indicators underscore continued pessimism about living expenses

Respondents’ perceptions about the cost of living compared to the previous month reflected the spike in the two indices: three quarters (75%) of those surveyed say the cost of living escalated ‘highly’ or ‘moderately’ over the past 12 months – up six percentage points from February (69%).

And one in five (20%) of those surveyed state that costs have either ‘stayed the same’ or ‘decreased a little,’ representing an eight percentage point decline from the month prior (28%).

Expectations of a ‘highly escalating’ cost of living also intensified with 30 percent of polled executives anticipating higher prices over the next 12 months – that’s double February’s 15 percent.

A further 38 percent foresee a ‘moderate escalation’ in their expenses – an 11 point increase from the previous month –  while 21 percent believe their spending ‘will remain the same,’ reflecting an 18 percent decline.

Only seven percent expect the cost of living to ‘decrease’ over the next 12 months – down six points from February.

When asked about their ability to purchase non-food items in the next 12 months, more than half (56%) feel they ‘will not have a chance,’ which is five point increase from the prior month.

Finally, nearly a quarter (24%) expect their spending on non-food items to ‘remain the same’ (down 2%) while 14 percent – three points lower than in February – 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.