eBusiness Weekly
A family of five required at least $5,293 in February this year to meet its basic needs for it not to be deemed poor, a 17 percent jump from $4,492 the previous month, latest data shows.
The jump reflects a continued increase in the prices of goods and services as inflationary pressures persist in the economy.
It also reflects volatility in the exchange rates.
“The Food Poverty Line for one person in February 2020 was $419 while that for an average household of five persons stood at $2,097,” the Zimbabwe National Statistics Agency (Zimstat) said in a tweet.
The poverty line is the threshold below which families or individuals are considered to be lacking the resources to meet the basic needs for healthy living; in other words, having insufficient income to provide the food, shelter and clothing needed to preserve health.
“The Total Consumption Poverty Line (TCPL) for one person was $1,059 while for an average five person household it stood at $5,293 for the same period.”
TCPL is commonly referred to as the Poverty Datum Line (PDL).
International Labour Organisation recommends that the PDL should be used as a benchmark or reference point in determining minimum wages.
However, in the current environment, wage growth is lagging behind inflation. – New Ziana
