The cost of living continues to increase – exclusive survey

The PepperCube Cost of Living Index (CLI) for May rose by 1.4 points from the previous month to reach 76.8. On a year on year basis (i.e. compared with the corresponding index of May 2020), the latest CLI reflects an increase of 2.4 points.

Meanwhile, the gap between the CLI and the Colombo Consumer Price Index (CCPI) has widened, which suggests that the household burden has escalated.

Of those consulted for PepperCube’s exclusive monthly survey, 92 percent of respondents say the cost of living of their families has risen – to a moderate degree or otherwise – over the last 12 months.

Similar to the results recorded in April, a mere three percent of survey participants state that the household burden has eased during this period while another five percent feel the cost of living is the ‘same as before.’

When it comes to their expectations about the cost of living in the next 12 months, 81 percent of those consulted by the pollsters anticipate an increase in the household burden. In contrast, only 12 percent say there will be a reduction in the future cost of living.

Additionally, six percent anticipate no change while the balance (1%) ‘don’t know’ or ‘can’t say.’

As for 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, 53 percent of the survey sample note the likelihood of hardships ahead. This reflects a continuation of the deterioration in the state of the people’s finances as only 50 percent pointed to such difficulties ahead in April.

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.