THE COST OF LIVING
HOUSEHOLD BURDEN EDGES HIGHER
The people note a continuous rise in the cost of living – exclusive survey
The PepperCube Cost of Living Index (CLI) has climbed 5.6 points higher from the previous month to reach 78.1 in September – this represents a continuous hike in the index recorded over a three month period.
However, when compared to the corresponding index in September last year, the latest CLI in fact reflects a decline of 5.6 points.
The gap between the CLI and Colombo Consumer Price Index (CCPI) has also widened further, which in turn suggests that the household burden has increased.
When consulted about the cost of living of their families, as many as 86 percent (down from 90% in the prior month) of respondents state that it has increased – moderately or otherwise – over the last 12 months while only seven percent are of the view that the household burden has eased during this period.
Meanwhile, approximately two-thirds (versus 62% in August) of survey participants expect the cost of living to escalate in the 12 months ahead; another eight percent of those surveyed believe that the household burden is likely to remain the same whereas 13 percent anticipate a decrease in the cost of living and a similar number simply say they ‘don’t know’ or ‘can’t say.’
And when it comes to the ability to purchase non-food goods and services by considering their cost of living, economic status and savings capacity in the coming 12 months, more than half (compared to 44% in the preceding month) of the survey sample point to a less than favourable outcome.
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.