HOUSEHOLD BURDEN MOUNTS

The nation’s cost of living creeps up in the eyes of citizens – exclusive survey

The PepperCube Cost of Living Index (CLI) increased by 6.8 percent month on month to 70.1 in July, which represents a change of course compared to the 12 percent decline in the previous month; that said, it is in line with its upward trajectory in January, February and May (note that fieldwork was not conducted in March and April due to COVID-19).

However, this reflects a 16 percent decrease compared to the CLI recorded in July 2019.


In this latest edition, the gap between the CLI and Colombo Consumer Price Index (CCPI) has widened, which suggests that the household burden has grown to some extent.

A vast majority (89%) of respondents state that the cost of living of their families escalated – moderately or otherwise – in the last 12 months. Another eight percent of those consulted by the pollsters believe the household burden remained the same during this period while a mere two percent say it has reduced.

Almost seven in 10 survey participants expect the cost of living to escalate in the next 12 months.

Meanwhile, nine percent of respondents believe that the household burden is likely to ease in the 12 months ahead; and another 17 percent are of the view that the cost of living will remain as is while the balance (7%) ‘don’t know’ or ‘can’t say.’

And 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, 40 percent of respondents to PepperCube’s survey  point to a negative outcome in the coming 12 months.

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.

– LMD