THE COST OF LIVING
HOUSEHOLD BURDEN EASES
Citizens point to a decline in the cost of living in the island – exclusive survey
The PepperCube Cost of Living Index (CLI) has declined by 12 percent month on month to 65.7 in June, which represents a reversal of its upward trajectory in January, February and May (note that fieldwork was not conducted in March and April due to COVID-19).
What’s more, this represents a 20 percent decrease compared to the CLI from June 2019.
The latest edition of the CLI also witnesses a narrowing of the gap between it and the Colombo Consumer Price Index (CCPI), which suggests that the household burden has reduced to a certain degree.
Eight in 10 survey respondents state that the cost of living of their families escalated – moderately or otherwise – in the last 12 months. And while 11 percent of those consulted by the pollsters believe that the household burden remained the same during this period, another eight percent say it has reduced.
Slightly over two-thirds of survey participants expect the cost of living to escalate in the 12 months ahead. And another 16 percent of respondents believe that the household burden is likely to ease in the next 12 months.
Meanwhile, 12 percent are of the view that the cost of living will remain as is and the balance (5%) ‘don’t know’ or ‘can’t say.’
Furthermore, when it comes to the ability to purchase non-food goods and services by taking into consideration their cost of living, economic status and savings capacity, a relatively slim majority (39%) of respondents point to a negative outcome in the 12 months ahead.
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.