HOUSEHOLD BURDEN MOUNTS  

The cost of living in Sri Lanka climbs up – exclusive survey

The PepperCube Cost of Living Index (CLI) for August recorded a surge of 8.6 points from the previous month to reach 85.7 – the largest increase registered since June 2020.

In addition to this, the latest CLI reflects a fall of 13.2 points when compared to the corresponding period of August 2020.

Meanwhile, the gap between the CLI and the Colombo Consumer Price Index (CCPI) has widened following a narrowing in July, which suggests that the household burden increased to some extent in August.

Ninety-two percent (up from 90% in the previous month) of those surveyed by PepperCube believe that the cost of living of their families has risen – to a moderate degree or otherwise – over the last 12 months.

Another five percent feel that it remained the same while three percent of respondents point to a lower cost of living.

Moreover, 84 percent of the survey sample anticipate an escalation in the household burden in the 12 months ahead – an increase from 78 percent in July.

In contrast, only eight percent of those consulted by the pollsters expect the household burden to ease during this period while seven percent are of the opinion it will remain the same and the balance (1%) ‘don’t know’ or ‘can’t say.’

As for the ability to purchase non-food goods and services when considering their cost of living, economic status and saving capacity in the coming 12 months, 79 percent (compared to 60% in the previous month) of the respondents point to the likelihood of negative perceptions 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