THE COST OF LIVING
PERSISTENT INFLATION STRAIN
November’s uptick accentuates businesspeople’s worries about high costs
The PepperCube Cost of Living Index (CLI) is on the rise again, marking an increase in November compared to the previous month. The CLI climbed to 90.4 basis points (from October’s 88.5), reflecting a rise of 1.9 points.
Following a pattern of fluctuations, the index has resumed its upward trend and is all but echoing the outcome in June 2023, when it was last in the 90s. After a dip from June, a surge in September and another dip in October, November witnessed an uptick.
Simultaneously, the Colombo Consumer Price Index (CCPI) recorded a 1.9 point increase but maintained its single digit trend for the fifth consecutive month. In November, the CCPI rose from 1.5 percent to 3.4 percent.
Despite a notable slowdown in inflation over recent months however, surveyed executives remain guarded about the cost of living – and doing business.
In the latest poll conducted by PepperCube, an overwhelming 97 percent of respondents say that the cost of living has increased either ‘highly’ or ‘moderately’ over the past 12 months. Only three percent believe it remained the ‘same as before.’
Sixty-one percent of executives anticipate a ‘highly escalated’ cost of living while a quarter (25%) expect it to ‘moderately escalate.’ In contrast, 10 percent feel it will ‘remain the same’ and three percent express hope of a ‘decrease.’
However, 84 percent of respondents harbour negative expectations and believe they ‘will not have a chance’ to purchase non-food items in the 12 months ahead.
Ten percent foresee the cost of living remaining unchanged and two percent hold on to a ‘slight chance’ of being able to purchase non-food items.
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.
