The cost of living records a decline – exclusive survey

The PepperCube Cost of Living Index (CLI) for July reflects a decline of 3.6 points from the previous month – compared to the upward trend in the index witnessed since March – to reach 77.1.

Similarly, the latest CLI reflects a fall of seven points when compared to the corresponding index in July 2020.

As for the gap between the CLI and the Colombo Consumer Price Index (CCPI), it has narrowed, which suggests that the household burden reduced to some extent in July.

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

Meanwhile, four percent of poll participants believe that the household burden has eased while another six in 100 are of the opinion that the cost of living remains the same.

When it comes to the 12 months ahead, 78 percent of survey participants expect the household burden to escalate compared to 83 percent in the previous month.

On the other hand, nine percent of respondents anticipate a reduction in the cost of living while 12 percent say it will be the same. Additionally, one percent ‘don’t know’ or ‘can’t say.’

And finally, 60 percent (down from 66% in the preceding month) of the survey population point to the likelihood of hardships ahead in terms of their ability to purchase non-food goods and services – i.e. 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.