THE COST OF LIVING

BACK IN ‘WATCH LIST’ MODE

Cost of living perceptions elevate along with a further squeeze on deflation

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.

 – 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.