Real purchasing power of people halved

Monday, 25 March 2024 00:22 - - {{hitsCtrl.values.hits}}

Daily FT columnist and former Central Bank Deputy Governor W.A. Wijewardena says the real purchasing power of the people have halved at present in comparison to 2021.

According to him, in terms of the new series of the Colombo Consumers’ Price Index or CCPI, in January 2021 when the CCPI was 100, it cost a family of 3.8 members Rs. 91,880 to buy the basket of real goods and services involved. In January 2024 when CCPI has increased to 200.6, the family should spend Rs. 184,311 to buy the same basket of real goods and services. That has increased the cost of living by 100%.

“If a family has the same income level as in January 2021, it amounts to cutting their real purchasing power by a half. This is an inflation tax which Sri Lankans have been paying over the period,” says Wijewardena.

Citizens should be aware of the burden of total Government expenditure