BABY STEPS OUT OF MISERY

Inflation drops by nearly 10 percent to 61 percent in the last two months

Since March 2022, the PepperCube Cost of Living Index (CLI) has sat firmly in the ninth percentile and it registered 93.5 in November – a slight dip from 94.6 in October.

On the other hand, the Colombo Consumer Price Index (CCPI) dropped by a welcome five percentage points (from 66% in October) to 61 percent – and for the sake of comparison, year on year inflation was (what was then considered high!) 9.9 percent 12 months previously. This is the fifth consecutive month the CCPI has rested in the sixth percentile.

Ninety-eight percent (as in October) of executives polled remain convinced that the cost of living in the preceding 12 months has escalated ‘highly’ or ‘moderately’ in November.

Unsurprisingly, sentiment pertaining to the cost of living in the next 12 months remains unchanged. As in October, 87 percent of November poll participants said they expect the cost of living to escalate ‘highly’ or ‘moderately’ in the next 12 months.

Since January, participant opinion regarding the escalation of the cost of living has hardly moved from the eighth and ninth percentiles.

Of PepperCube’s sample population, 64 percent (the highest in 2022) believe they ‘will not have a chance at all’ to purchase non-food goods and services or be able to save in the next 12 months. June (63%) was last when pessimism ran so high.

With regard to the ability to purchase non-food goods and services, in November a quarter said they ‘will not have a chance,’ compared to a third in October and 40 percent in January, who picked this choice in view of the rising cost of living, their current financial status and inability to save.

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