Chronicle Editor
Oliver Kazunga, Acting Business Editor
THE country’s poverty datum line (PDL) was $4 188 last month having increased by 14,5 percent from $3 656 in November as the cost of living remains high, latest official figures show.
According to the Zimbabwe National Statistics Agency (Zimstat), the PDL measures the basic needs for an average family of five.
Data released on Tuesday by the agency shows that the Total Consumption Poverty Line (TCPL) for an average of family of five stood at $4 188,42 in December compared to $3 656,48 the previous month.
“The TCPL for an average of five persons stood at $4 188,42 in December 2019. This means that an average household required that much to purchase both food and non-food items for them not to be deemed poor,” said Zimstat.
In the report, the agency also said the PDL varies by province as prices vary from place to place.
In this vein the TCPL for an average household in December 2019 ranged from $3 799 in Mashonaland Central province to $4 505 in Matabeleland North province.
“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.
According to the agency, the TCPL is a combination of food and non-food items that an average family required for it not to be deemed poor.
The TCPL for Zimbabwe stood at $837,68 per person in December 2019. This means that an individual required that much to purchase both non-food and food items as at the period under review in order not to be deemed poor.
This represents an increase of 14,5 percent when compared to the November 2019 figure of $731,30.
“The food poverty line (FPL) as at December 2019 stood at $372,58. This means that the minimum needs basket cost that much per person in December 2019. This represents an increase of 13,8 percent over the November 2019 figure of $327,42,” Zimstat said.
The December 2019 FPL for an average of five persons in Zimbabwe stood at $1 862,88 compared to the November 2019 figure of $1 637,09.
Prices of goods and services have been going up as the local currency continues to devalue against the greenback.
But the Ministry of Finance and Economic Development forecasts that the foreign exchange market rates and inflationary pressures will ease as the implementation of macro-fiscal stabilisation measures continue. — @okazunga.
Online Reporter