Basic Basket: A household needed $203,361 in April to stay out of poverty, 6.3% more than in March

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A typical family needed in April 203.361 pesos so as not to be considered poor, according to the data that INDEC published this Tuesday on the basic and total food basket. It’s an increase of 6.3% compared to March. Also, they are needed 94,148 pesos exceed the poverty limit, 7.3% more than the previous month.

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For a family consisting of a 35-year-old man, a 31-year-old woman, a 6-year-old son, and an 8-year-old daughter, the Total Basic Basket (CBT) was 203,361 pesos. In March, a similar family needed 191,228 pesos to stay below the poverty line.

Thus, after the 8% increase in March compared to February, the CBT recorded a rise of 6.3% compared to the previous month. In 2023 the cumulative change reaches 33.3%, while that on an annual basis is 113.5%.

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The Basic Food Basket (CBA) for a typical household stood at 94,148 pesos, up 7.3% from March. In this case the cumulative increase in 2023 is 40.1% and in the last 12 months it has risen to 121.4%.

These data are added to the worrying rate of inflation that the same body released last Friday and which has exceeded all forecasts: 8.4% in April, driven by the race for the dollar.

In the previous one, the Department of Statistics and Censuses of the City of Buenos Aires had calculated a worrying number for the baskets of Buenos Aires: the one that serves as a reference for estimating poverty increased by 9% in April, while the basket of poverty rose by 11.04%.

According to the INDEC, the basic food basket is determined taking into account the normative need for kilocalories and essential proteins for an adult male between 30 and 60 years of age, of moderate activity, to cover these needs for one month. Includes: bread, crackers, rice, wheat flour, noodles, potatoes, sweet potatoes, sugar, pulses, meat, milk, and eggs, among others.

Meanwhile, the Total Basic Basket (CBT) expands the basic food basket to include non-food goods and services, including the cost of transportation, electricity and gas, among others.

In April, the CBT for an equivalent adult was 65,813 pesos, while the CBA reached $30,469.

The CBA and CBT data for April was released four days after INDEC revealed that prices rose 8.4% in the same month, which translated to a cumulative 32% for 2023. Additionally, the year-on-year change rose to 108.8%, the highest in over 30 years.

The food segment was one of the fastest growing segments, according to the April inflation calculation.  Photo Emmanuel Fernandez

The food segment was one of the fastest growing segments, according to the April inflation calculation. Photo Emmanuel Fernandez

This inflationary record has not only exceeded official expectations, after Sergio Massa estimated it would be around 3%, but also surprised specialists who had expected a lower number than what has finally been released.

Inflation in April was driven by the “Clothing and footwear” segments, with an average increase of 10.8% due to the change of season. Followed by “Food and non-alcoholic beverages”, with an increase of 10.1%.

Increase in the basket of poverty in the city of Buenos Aires

According to data provided by the government of Buenos Aires, the basket of poverty in the city has already increased by more than 44% this year, an increase that even exceeds inflation.

The line of poverty for a typical family reached $119,742. Thus, in the first four months of 2023 alone, the basic basket of poverty in Buenos Aires – equivalent to the inflation of the poorest sectors – rose by 43.6%. In the past 12 months, meanwhile, it has increased by 129.5% (from $52,169 to $119,742).

For its part, the basket of poverty saw a 9% increase in April, with cost rising from $191,241 in March to $208,569 not including rent. That’s an increase of 118.9% in 12 months, from $95,268 to $208,569. Adding in modest rent, a typical family (married couple and 2 minor children) needed more than $280,000 to avoid being poor.

In the city, the main food impulses came from meat and derivatives; vegetables, tubers and legumes; milk, dairy products and eggs; and bread and cereal.

Source: Clarin

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