THE COST OF LIVING

GOOD NEWS ON DUAL FRONTS

Cost of living perceptions are in line with the deflationary milieu

Notably, the CLI stood at a staggering 91.9 at the same time last year.

Meanwhile, the Colombo Consumer Price Index (CCPI) continued to remain in deflationary territory, albeit with a tapering change from February: the CCPI registered a year on year deflation rate of -2.6 percent in March, which represents a reversal from the -4.2 percent recorded in the previous month.

Respondents’ perceptions have shifted somewhat from February. Fifty-eight percent believe the cost of living has ‘highly’ or ‘moderately escalated’ over the past 12 months, reflecting a six percent decrease from February’s findings.

In March, 27 percent of poll participants said that costs either ‘stayed the same’ or ‘decreased’ – that’s a five point increase compared to the previous month.

And expectations of a ‘highly escalating’ cost of living eased slightly with 18 percent of polled executives anticipating higher prices over the next 12 months – a two percent drop from February.

Meanwhile, 14 percent of respondents foresee a ‘moderate escalation’ in expenses, marking a four percentage point decline from February. Well over four in 10 (46%) anticipate their spending ‘will remain the same’ – up six points from the previous month’s findings.

Additionally, 17 percent believe the cost of living ‘will decrease’ over the next 12 months.

Roughly half (51%) of the survey population say they ‘will not have a chance’ to purchase non-food items in the next 12 months – an increase of two percentage points from the preceding month.

And 31 percent expect their spending to ‘remain the same,’ reflecting a two point decrease from February, while 14 percent remain optimistic about being able to afford non-food products.

 – LMD

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.