HOUSEHOLD BURDEN ESCALATES

The cost of living in Sri Lanka continues to rise – exclusive survey

The PepperCube Cost of Living Index (CLI) for September recorded an increase of 1.3 points from the previous month to reach 87 – rising for the second consecutive month. On a year on year basis (i.e. compared to the corresponding index of September 2020), the latest CLI reflects an increment of 8.9 points.

Meanwhile, the gap between the CLI and Colombo Consumer Price Index (CCPI) continued to widen, which suggests that the household burden escalated to some extent in September.

Of those consulted for PepperCube’s exclusive monthly survey, 97 percent (up from 92% in the previous month) say that the cost of living of their families has risen – to a moderate degree or otherwise – over the last 12 months.

Marking a decline from the previous month, three percent (versus 5% in August) feel it remained the same while there were no reports of a decrease in the cost of living.

In addition, 87 percent (compared to 84% in the previous month) of survey participants believe that an escalation in the household burden is on the cards in the 12 months ahead.

On the other hand, three percent of respondents anticipate a reduction in the cost of living during this period while nine percent say it will remain the same and the balance (1%) ‘don’t know’ or ‘can’t say.’

And when it comes to the ability to purchase non-food goods and services by taking into consideration their cost of living, economic status and saving capacity, 76 percent (down from 79% in the preceding month) of the survey sample point to the likelihood of a negative outcome 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