HOUSEHOLD BURDEN INTENSIFIES

The cost of living continues to trend upwards – exclusive survey

The PepperCube Cost of Living Index (CLI) for June recorded a growth of 3.9 basis points from the previous month to reach 80.7, rising for the third consecutive month.

Furthermore, the latest CLI reflects an increase of 15.1 points on a year on year basis (i.e. compared with the corresponding index of June 2020).

Meanwhile, the gap between the CLI and the Colombo Consumer Price Index (CCPI) has widened, suggesting that the household burden has continued to escalate.

More than nine in 10 respondents to PepperCube’s exclusive monthly survey say that the cost of living of their families has risen – to a moderate degree or otherwise – over the last 12 months.

On the other hand, only three percent of those consulted by the pollsters are of the opinion that the household burden has eased during this period while another six percent say the cost of living is the ‘same as before.’

As for the 12 months ahead, 83 percent of survey participants anticipate an increase in the household burden. Moreover, three percent expect that the future cost of living will reduce and 13 percent say it will be the same. The balance (1%) ‘don’t know’ or ‘can’t say.’

Meanwhile, 66 percent of the survey sample expect hardships ahead in terms of their ability to purchase non-food goods and services, by considering their cost of living, economic status and savings capacity in the coming 12 months.

This points to a continued deterioration of the state of the people’s finances compared to the previous month when 53 percent of respondents expressed this view.

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