HIGH FIGURES FOR LOW TIMES!

Why the cost of living index reflects the tribulations of the times

How grateful are we for small mercies! The PepperCube Cost of Living Index (CLI) has reverted to its second all-time high of 93.2 – as in March and now in May – from last month’s painful 95.3! Do we dare hope that this is the beginning of a reversal of misfortune?

Although 16 points higher than a year ago, the May CLI is four points less than last month’s comparable 12 month difference of 20 points, which is heartening.

The Colombo Consumer Price Index (CCPI) on the other hand has risen yet again – from April’s inconceivable 39.1 percent year on year to still greater heights a month later – 45.3 percent!

Poll participants (96% of them) are of the opinion that the cost of living of their families in the last 12 months has escalated ‘highly’ or ‘moderately,’ reiterating the degree of opinion held throughout from December last year.

The proportion of those who expect an appreciation of their household expenditure in the next 12 months has also not relinquished its position in the 90th percentile in the last six months, and may remain so even as any further increases in the cost of living cannot be countenanced.

Eighty-five percent of those polled by PepperCube say they ‘will not have a chance at all’ (58%) or ‘will not have a chance’ (27%) to purchase non-food goods and services, considering the rising cost of living, or be able to save in the next 12 months.

Just six months ago, this level of despondency was expressed only by 77 percent of the sample population – that was when those who expected no change was twice that (14% in January) of May’s seven percent.

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