The Poverty rose to 48.9% of Argentines in it November-April semester, which affects 29.4 million people, according to a study by the Torcuato Di Tella University.
It’s about a increase of 0.6 percentage points regarding the period October-March and 7.2 points compared to the semiannual data that the university reported last December.
The average Total Basic Basket (CBT) of the Greater Buenos Aires (GBA) region for the reference semester was estimated at $203,642 per adultwhich represents a year-on-year increase of 265.3%, indicated the latest Di Tella nowcast.
In addition, for the average total family income (ITF), the university projected an interannual increase of 196.1% for the semester.
“With these data and the simulation of the microdata from the Permanent Household Survey (EPH) for the fourth quarter of 2023 and the first and second quarters of 2024, the poverty rate was projected: the nowcast estimates it at 48.9% for the November-April semester, with a 95% confidence interval between 47.4% and 50.4%”, he remarked.
In turn, the projected incidence can be decomposed mechanically in a weighted average poverty rate of 45.2% for the two-month period November-December 2023, 51.8% for the first quarter of 2024 and 48% for the month of April 2024.
This projection suggests that about 49% of people live in poor urban households. The urban population captured by the EPH in the reference semester was estimated at 29.4 million people, which implies that around 14.4 million live in poor urban households, Di Tella’s nowcast concluded.
A family needs more than $828 thousand to not be poor
The basic basket rose 7.1% in April, below inflation, and a family needed $828,158 to not be poor, INDEC reported on Tuesday. In addition, the food basket grew 4.2% and $373,044 were needed to avoid being destitute. The Total Basket (CBT) was below inflation, which was 8.8%.
For its part, The cost of the products that make up the Basic Food Basket (CBA) rose 4.2% in April, which determined that the same type of family needed income of $373,044 to avoid falling into destitution. According to data reported by INDEC, a person needed $268,012 to not be poor in April.
In a household of three people, $659,310 was required; Meanwhile, a family of four needed a minimum income of $828,158. If one member joins, the sum rises to $871,040. This corresponds to the data of the Total Basic Basket (CBT).
In accordance with the values set by the Basic Food Basket (CBA) for April, a person required $120,726 to not be indigent. In the case of a family of three members, the amount amounts to $296,987 and, for four, $373,044 was required.
A family of five people, meanwhile, required $392,360. The CBT, in addition to food, includes several items of household spending, such as clothing, health, transportation or education, which determines the “poverty line.”
On the other hand, the CBA is limited to collecting essential goods and configures the “indigence line”: those families that do not cover the income necessary to acquire it are indigent. Both indices are very relevant to determine the magnitude of the economic crisis in social indicators.
Source: Ambito
