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Consumption poverty line up to $25 million
The Chronicle (Zimbabwe)
March 13, 2006

http://www.chronicle.co.zw/inside.aspx?sectid=2579&livedate=3/13/2006%2012:00:00%20AM&cat=8

THE Total Consumption Poverty Line (TCPL) for a household of five shot to $25,5 million last month, according to latest data from the Central Statistical Office, rising 27,4 percentage points on the January figure.

By contrast, the Consumer Council of Zimbabwe reported last month that the consumer basket for an urban family of six had risen to $28 million per month.

Unlike the CCZ survey which is confined to urban areas, the CSO's data covers both urban and rural households.

The TCPL is derived by computing the nonfood consumption expenditures of poor households whose consumption expenditures were equal to the FPL. On the other hand, the Poverty Datum Line (PDL) represents the cost of a given standard of living if a person is deemed not to be poor.

The third consumption yardstick - the Food Poverty Line - represents the minimum consumption expenditure necessary to ensure that each household member can (if all expenditures were devoted to food) consume a minimum food basket representing 2 100 kilo calories.

The latest PDL figures confirm that most Zimbabweans are living in poverty as their salaries fall far short of the PDL.

In other words, the breadwinner in a household of five persons should earn an income at par or in excess of $25,5 million per month in order to avoid being classified as poor.

Sadly, many families were struggling to make ends meet even at the January TCPL of $20 million.

In the last 12 months, the TCPL has gone up a staggering 993 percent from $2,3 million in February 2005. Salaries, however, have been lagging behind.

The Food Poverty Line for an average of five persons for February rose to $9,1 million up 16,3 percentage points on the January figure of $7,8 million.

"This means that the minimum food basket cost that much for an average of five persons in December," the CSO said. This translated to about $1,8 million per person.

The CSO said the poverty lines varied by province as prices differed from place to place "so the TCPL for an average household in February 2006 ranged from $22,6 million in Masvingo to $28,7 million in Manicaland province".

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