THE COST OF LIVING
INFLATION EMPTIES BELLIES
The unique cost of living index reflects the benighted times we live in
We remain despondent but grateful that the PepperCube Cost of Living Index (CLI) has only moved by 0.7 – from last month’s 93.2 to 93.9. It’s certainly not the smidgen of good news everyone was hoping for but as things could have been worse, it’s best not to complain.
The Colombo Consumer Price Index (CCPI) on the other hand has risen yet again – from May’s great heights of 39.1 percent to a heart-stopping altitude of 54.6 percent year on year in June!
Poll participants (95% of the sample population) remain of the opinion that the cost of living of their families in the last 12 months has escalated ‘highly’ or ‘moderately,’ and have held fast to this view since January this year with slight variations but always within the 94-97 percent range.
Similarly, as no tangible improvement is seen on the national front at the time of going to print, nine out of 10 polled expect an increase in the cost of living in the next 12 months. This opinion has been consistently expressed since the beginning of this year.
Eighty-seven percent of those polled by PepperCube reiterate that they ‘will not have a chance at all’ (63%) or ‘will not have a chance’ (24%) to purchase non-food goods and services, or be able to save in the next 12 months, considering the rising cost of living and their current financial status.
In January, three times as many people anticipated that their ability to purchase such goods and services, and to save in the next 12 months would remain the same. Turn the clock forward to June and the number stands at a lowly six 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.