RELIEF FOR HOUSEHOLD BURDEN

The cost of living records a marginal decline – exclusive survey

The PepperCube Cost of Living Index (CLI) for November represents a decline of six points from the previous month – as opposed to the continuous uptick in the index witnessed since July – to reach 73.6.

On the other hand, the latest CLI points to an increase of 1.8 points when compared with the corresponding index of November 2019.

Meanwhile, the gap between the CLI and the Colombo Consumer Price Index (CCPI) has narrowed, thereby reversing the trend of the previous four months, which suggests that the household burden has reduced to some extent.

Of those consulted by the pollsters, 82 percent (down from 90% in October) say the cost of living of their families has reduced – moderately or otherwise – over the last 12 months. Seven percent of those surveyed state that the household burden has eased during this period whereas 11 percent are of the view that the cost of living has remained the ‘same as before.’

As for their expectations regarding the cost of living over the next 12 months, nearly eight in 10 respondents point to an escalation of the household burden. Only seven percent of those polled feel there could be a reduction in the cost of living going forward while 10 percent of respondents anticipate no change.

When it comes 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, close to half (compared to 62% in the prior month) of the survey sample note the likelihood of negative conditions ahead.

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