HOUSEHOLD BURDEN INTENSIFIES

The cost of living takes the path of an incline – exclusive survey

The PepperCube Cost of Living Index (CLI) has increased slightly from the previous month – i.e. by 1.5 points – to reach 79.6 in October, continuing the upward trend in the index witnessed since July.

Nevertheless, the latest CLI reflects a decline of 2.3 points when compared to the corresponding index of October 2019.

In terms of the gap between the CLI and the Colombo Consumer Price Index (CCPI), it has widened – as has been the case for a period of at least three months. This suggests that the household burden has escalated.

Nine in 10 survey respondents say the cost of living of their families has increased – moderately or otherwise – over the last 12 months. And a mere four percent of those polled state that the household burden has eased during this period while another five percent believe that the cost of living is the ‘same as before.’

When consulted about their expectations vis-à-vis the cost of living in the next 12 months, a clear majority (79%) of those surveyed point to an escalation of the household burden. Meanwhile, 12 percent of respondents anticipate no change in the future cost of living and only six percent feel there could be a reduction.

Moving on to the ability to purchase non-food goods and services by considering their cost of living, economic status and savings capacity in the coming 12 months, more than six in 10 (up from 56% in the previous month) of poll participants say their odds aren’t favourable.

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