THE COST OF LIVING
INFLATION HEADS NORTH AGAIN
There aren’t any pleasant surprises as both indices continue their ascent
The PepperCube Cost of Living Index (CLI) registered a rise to 92.6 from July’s 91.3. And with inflation rising globally, it’s unlikely that we’ll see any dramatic downward movement soon.
In August last year, the CLI rose sharply from 77.1 in the previous month to 85.7, and has been on the rise since with a few fluctuations.
Once more, the Colombo Consumer Price Index (CCPI) has also risen by three and a half percentage points to 64.3 percent this August – this is the third consecutive month in which an increase was recorded and eons away from the six percent year on year in August 2021.
Almost everyone polled (97%) said that the cost of living in the last 12 months has escalated ‘highly’ (92%) or ‘moderately’ (5%). Since the beginning of the year, this sample population hasn’t moved on this position to any notable degree.
In August, six out of 10 (62%) poll participants said they expect the cost of living to escalate ‘highly’ in the next 12 months, which is almost on a par with sentiments expressed a year ago (56%). Twenty-three percent expect a moderate escalation, which is a considerable change in sentiment from July (13%).
Those from the sample population polled by PepperCube who consider that they ‘will not have a chance at all’ (53%) or ‘will not have a chance’ (33%) 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 – has risen by three percent from July.
Even the percentage of poll participants who anticipate that their purchasing power and ability to save will remain stable has seen a decrease from nine percent in the previous month to just six percent in August.
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.