THE COST OF LIVING
BACK IN ‘WATCH LIST’ MODE
Cost of living perceptions elevate along with a further squeeze on deflation
The PepperCube Cost of Living Index (CLI) saw an upward shift in April, rebounding from its notable fall of four basis points in the previous month – the index rose by an equally notable 4.3 points from 54.6 in March to 58.9 a month later.
Meanwhile, the Colombo Consumer Price Index (CCPI) continued to remain in deflationary territory, albeit that the rate of deflation eased slightly from March. In April, the CCPI registered a year on year rate of deflation of -2.2 percent, which represents a fall from the -2.6 percent recorded in the previous month.
Respondents’ perceptions remain largely unchanged from March. Seventy-eight percent believe the cost of living has ‘highly’ or ‘moderately escalated’ over the past 12 months, reflecting a seven percent increase from March’s findings.
In April, 21 percent of survey participants said that costs either ‘stayed the same’ or ‘decreased’ – that’s a six point drop compared to the preceding month.
And expectations of a ‘highly escalating’ cost of living edged up with a fifth of polled executives anticipating higher prices over the next 12 months, marking a two percent spike from March.
In the meantime, 18 percent foresee a ‘moderate escalation’ in expenses – up four percentage points from March. And slightly over four in 10 (42%) anticipate their spending ‘will remain the same’ – down four points from the prior month’s findings.
Exactly half (50%) of the survey population say they ‘will not have a chance’ to purchase non-food items in the next 12 months – down one percentage point from the preceding month.
And 30 percent believe their spending will ‘remain the same,’ reflecting a one point dip from March, while 15 percent remain optimistic about being able to afford non-food products.
