HOUSEHOLD BURDEN CRAWLS UP

The cost of living continues to creep up on the people – exclusive survey

The PepperCube Cost of Living Index (CLI) for December recorded a growth of 2.2 points from the previous month – compared to the decline registered in November – to reach 75.8.

On a year on year basis (i.e. compared with the corresponding index of December 2019) too, the latest CLI reflects an increase of nearly 10 points.

At the same time, the gap between the CLI and the Colombo Consumer Price Index (CCPI) has widened, which points to a continuation of the trend witnessed during the second half of 2020. This suggests that the household burden has increased to some extent.

More than eight in 10 respondents to the survey say the cost of living of their families has increased – moderately or otherwise – over the last 12 months. Another eight percent of those consulted state that the household burden has eased during this period whereas a similar number are of the view that the cost of living has remained unchanged.

When it comes to the 12 months ahead, 81 percent of survey participants are of the view that the household burden is likely to escalate.

Meanwhile, seven percent of those polled anticipate a reduction in the future cost of living while nine percent feel that it will ‘be the same.’

Moreover, slightly over half of the survey sample notes the likelihood of hardship ahead in terms of the ability to purchase non-food goods and services by considering their cost of living, economic status and saving capacity in the coming 12 months.

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