THE COST OF LIVING

COSTS EASE BUT CONCERNS LINGER  

Key indicators fall although sentiment surrounding costs remains pessimistic

Respondents’ perceptions about the cost of living remained pessimistic compared to the previous month. Nearly seven in 10 (69%) of those surveyed believe that the cost of living escalated ‘highly’ or ‘moderately’ over the past 12 months – a four percentage point drop from January (73%).

Over a quarter (28%) of those surveyed say that costs have either ‘stayed the same’ or ‘decreased,’ representing a four percentage point increase from the preceding month (24%).

And expectations of a ‘highly escalating’ cost of living appear to have eased somewhat with only 15 percent of polled executives anticipating higher prices over the next 12 months – that’s six percentage points lower than in January.

In the meantime, 27 percent foresee a ‘moderate escalation’ in their expenses – a marginal one point decline from the previous month. And 39 percent believe their spending ‘will remain the same,’ reflecting a six percent increase.

Only 13 percent believe that the cost of living ‘will decrease’ over the next 12 months – that’s unchanged from January.

When asked about their ability to purchase non-food items in the next 12 months, just over half (51%) of respondents say they ‘will not have a chance,’ marking a six point decrease from the prior month.

And slightly over a quarter (26%) expect their spending on non-food items to ‘remain the same’ (up 2%) while 17 percent – three points higher than in January – 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.