Poverty Datum Line jumps 10,7 percent to $17 200, ZimStat report

THE Poverty Datum Line (PDL) for an average family of five rose to $17 244,07 last month, a 10,7 percent increase from the month of July rate of $15 572,85, according to the Zimbabwe National Statistics Agency (Zimstat).

The PDL measures the cost of basic needs for an average family of five. In its latest report published yesterday, the agency said:

“The Total Consumption Poverty Line (TCPL) for an average family of five stood at $17 244,07 in August 2020. This means that an average household required that much to purchase both food and non food items for them not to be deemed poor.”

The latest data indicates that although the PDL shot to $17 244,07 last month, the trajectory increased at a decreasing rate compared to a 37,4 percent spike achieved in July from $11 333,80 in June 2020.

The slow rise in the PDL in August is largely attributable to massive decrease in inflation, reflecting that the stability of the exchange rate is having a positive knock-on effect on the prices of goods and services.

Zimstat also announced this week that month-on-month inflation rate stood at 8,44 percent in August when a significant recession of 27,09 percentage points was recorded from the July rate of 35,53 percent.

The easing of the month-on-month inflation rate has been linked to tight monetary policy measures by the monetary authorities.

Of late, the effect of rising inflation has been that it limited options for consumers who were suffering diminishing spending power as prices continued increasing in response to changes on the exchange rate.

Zimstat said in August the Food Poverty Line (FPL) for an average of five persons stood at $7 210,99.

This represented an increase of 8,6 percent when compared to the July 2020 figure of $6 642.98.

For the month under review, Zimstat said the TCPL for Zimbabwe stood at $3 448,81 per person.

It said this means that an individual required that much to purchase both non-food and food items as at August 2020, in order not to be deemed poor.

“This represents an increase of 10,7 percent when compared to the July 2020 figure of $3 114,57.

“The poverty datum lines vary by province as prices vary from place to place. The TCPL for an average household in August 2020 ranged from $15 909 in Mashonaland Central province to $18 891 in Matabeleland

North privince,” said the agency, adding that the differences are explained by differences in average prices in the provinces.

The quantities of commodities consumed at base year in the minimum needs basket, which is consistent with the preferences of the poor individuals and households in Zimbabwe are fixed.

“The variations in the value of the basket are explained by changes in average prices,” said Zimstat. —chronicle

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