THE COST OF LIVING
HOUSEHOLD BURDEN A CONCERN
The monthly cost of living index continues to be higher than a year ago
The PepperCube Cost of Living Index (CLI) for October reflects a decline of 2.9 points from the previous month – compared to the upward trend in the index witnessed in August and September – to reach 84.1.
However, the latest CLI points to an increase of 4.5 points when compared to the corresponding month of October 2020.
As for the gap between the CLI and Colombo Consumer Price Index (CCPI), it widened – and this suggests that the household burden has continued to escalate.
Almost 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 seven percent of those consulted by the pollsters are of the opinion that the household burden has eased during this period while another three percent say the cost of living is the ‘same as before.’
As for the 12 months ahead, 82 percent of survey participants anticipate an increase in the household burden. Moreover, two percent expect that the future cost of living will reduce and nine percent say it will be the same. The balance (7%) ‘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, 69 percent of the survey sample note the likelihood of hardships ahead.
This marks a slight improvement in the state of people’s finances as only 76 percent pointed to such difficulties ahead in September.
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.