THE COST OF LIVING
HOUSEHOLD BURDEN HOPS UP
The people say the cost of living continues to rise exclusive survey
The PepperCube Cost of Living Index (CLI) has moved up by 2.4 points compared to the previous month to 72.5 in August, thereby continuing the upward trajectory recorded in all but June this year (note that fieldwork was not conducted in March and April due to the COVID-19 related curfew).
It is worth noting however, that the latest index result reflects a 12.2 point decrease compared to the CLI recorded in August 2019.
Moreover, the gap between the CLI and Colombo Consumer Price Index (CCPI) has widened further, suggesting that the household burden has grown.
Similar to the prior month, the majority (90%) of survey respondents say the cost of living of their families has escalated – moderately or otherwise – over the last 12 months.
And while eight percent of those consulted by the pollsters believe the household burden remained the same during this period, another three percent state that it has reduced.
Slightly more than six in 10 survey participants anticipate that the cost of living will escalate in the next 12 months. Eleven percent of respondents believe that the household burden is likely to ease in the 12 months ahead while another 14 percent expect the cost of living to remain as is and the balance (i.e. as many as 13% of those polled) ‘don’t know’ or ‘can’t say.’
Meanwhile, in terms of the ability to purchase non-food goods and services when considering their cost of living, economic status and savings capacity, 44 percent of the survey sample point to a less than favourable 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.