THE COST OF LIVING
The PepperCube Cost of Living Index (CLI) declined in April, falling four points from 70.8 in March to 66.8. This marks a return to the downward trend observed since January with March being the only month in which the index rebounded to the 70s range.
In contrast, the Colombo Consumer Price Index (CCPI) continued to rise with year-on-year inflation increasing to 5.4 percent in April – up 3.2 percentage points from the preceding month’s 2.2 percent.
DICHOTOMY OF INDICATORS
The duo of cost of living indicators moved in opposite directions in April
Nearly eight in 10 (77%) of those surveyed say the cost of living escalated ‘highly’ or ‘moderately’ over the past 12 months – up two percentage points from March (75%).
And one in five (20%) of those surveyed state that costs have either ‘stayed the same’ or ‘decreased a little,’ which is unchanged from the previous month.
Expectations of a ‘highly escalating’ cost of living eased with only 27 percent of polled executives anticipating higher prices over the next 12 months – i.e. three percentage points lower than in March (30%).
A further 31 percent foresee a ‘moderate escalation’ in expenses, reflecting a seven point decline from the previous month, while 28 percent believe their spending ‘will remain the same’ (a 7% increase).
Only 10 percent expect the cost of living to ‘decrease’ over the next 12 months – up three percentage points from March.
When asked about their ability to purchase non-food items in the next 12 months, more than half (55%) say they ‘will not have a chance’ – a marginal one point decrease from the prior month.
And a quarter (25%) of respondents expect their spending on non-food items to ‘remain the same’ (up 1%) while 16 percent – up two points from March – remain optimistic about their ability to afford such purchases.
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.
– LMD
This content is available for subscribers only.
