THE COST OF LIVING
COST SENTIMENTS STAY PUT
Cost of living metrics remain muted with little movement on the scale
The PepperCube Cost of Living Index (CLI) remained steady at 59.5 in June, unchanged from May, likely reflecting subdued consumer sentiment and limited shifts in underlying cost drivers.
Moreover, the Colombo Consumer Price Index (CCPI) continued in deflationary territory, marginally down from May. The CCPI recorded a year-on-year rate of deflation of -0.6 percent in June compared to -0.7 percent in the previous month.
Meanwhile, respondents’ perceptions about the cost of living showed little change from the previous month. Seventy-nine percent believe the cost of living has ‘highly’ or ‘moderately escalated’ over the past 12 months – up by one percentage point from May’s findings.
In June, a fifth (20%) of survey participants said that costs either ‘stayed the same’ or ‘decreased,’ reflecting a one point dip from the preceding month.
And expectations of a ‘highly escalating’ cost of living edged up with one in five (20%) of polled executives anticipating higher prices over the next 12 months, marking a one percentage point decline from May.
Furthermore, 20 percent expect a ‘moderate escalation’ in their expenses – up by one percentage point from the month prior. And just over four in 10 (41%) anticipate that their spending ‘will remain the same,’ down three points from the previous month.
Additionally, 12 percent feel the cost of living ‘will decrease’ over the next 12 months – unchanged from May.
A little less than a half (48%) of the survey population say they ‘will not have a chance’ to purchase non-food items in the next 12 months – down three percentage points from the preceding month.
And finally, over a third (35%) believe their spending will ‘remain the same,’ marking a two point increase from May, while 12 percent are optimistic about being able to afford non-food products – which is on a par with the month prior.
