INFLATION CRAWLS DOWN

The cost of living index and year on year inflation continue to edge down

The PepperCube Cost of Living Index (CLI) remains in the ninth percentile – as it has since March last year – with the barometer registering 95.6 in February, which represents an ever so slight dip from 95.7 in January.

On a slightly more positive note, the Colombo Consumer Price Index (CCPI) shed more than three percentage points to register 50.6 percent year on year (from 54.2% in the previous month).

This follows declines of between three and five percent in November and December 2022, and January this year.

However, this is the ninth consecutive month in which the CCPI has registered above 50 percent year on year.

As for comparisons, year on year inflation was only slightly higher than 15 percent in February last year.

In the meantime, 98 percent (that’s one percentage point higher than in the prior month) of executives polled in February feel the cost of living in the preceding 12 months escalated ‘highly’ or ‘moderately.’

The level of anxiety about cost of living escalations stood at 97 percent 12 months ago – so in that sense, little has changed! On the contrary, sentiment about the cost of living in the next 12 months has changed.

Ninety-five percent of the sample population (91% in the previous month) now believe that prices will increase ‘highly’ or ‘mode­rately’ during this period. A year ago, this count stood at 92 percent.

Among those polled by PepperCube, 69 percent (up 6% from January) feel 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.

For the record, only a third or thereabouts (35%) said so at this time last year.

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