CONSUMER PRICES ON A PIVOT
Will the reduction provided in Finances 2026 be offset by a post-cyclone worth spiral?
The PepperCube Price of Residing Index (CLI) rose in November, reversing its three month downward development by climbing to 62.9 – a 2.7 level improve from October’s 60.2.
Alternatively, the Colombo Client Value Index (CCPI) stood nonetheless, recording a year-on-year fee of inflation of two.1 p.c – as in October.
It stays to be seen whether or not the reduction provided within the authorities’s 2026 finances might be offset by the anticipated value of dwelling spiral following Cyclone Ditwah, during which case each indices may head upwards – a minimum of within the brief time period.
Respondents’ perceptions about the price of dwelling stay largely unchanged from the month prior. Seventy-eight p.c consider the price of dwelling has ‘extremely’ or ‘reasonably escalated’ over the previous 12 months – a slight improve of three factors from October (75%).
Twenty p.c of survey individuals say that prices have both ‘stayed the identical’ or ‘decreased,’ marking a two level decline from the previous month.
Expectations of a ‘extremely escalating’ value of dwelling rose with 18 p.c of polled executives anticipating increased costs over the following 12 months – up two proportion factors from October.
In the meantime, 32 p.c count on a ‘average escalation’ of their bills – a 3 level improve from October – whereas a 3rd (33%) consider their spending ‘will stay the identical’ (up 1%).
And solely 12 p.c really feel the price of dwelling ‘will lower’ over the following 12 months (October – 15%).
When requested about their means to buy non-food objects within the subsequent 12 months, 51 p.c of the survey inhabitants mentioned they ‘won’t have an opportunity,’ reflecting a six proportion level spike from October.
Three in 10 (30%) count on their spending to ‘stay the identical’ (down 4%) whereas 16 p.c (which is one level decrease than in October) stay optimistic about affording non-food merchandise.
– LMD
FOOTNOTE An index based mostly on a month-to-month survey, the CLI goals to measure and perceive perceptions concerning the price of dwelling versus reported or official inflation.
