The basic food basket is defined by ECLAC, and contains the minimum calorie requirements to ensure the survival of the individual. How do we measure poverty? Poverty has no single definition and its measurement is complex. The used and available in Mideplan (Ministry of Planning), is the poverty line, which is calculated based on total per capita income of the household. If that income does not reach the value of a basket of food, the people who compose the household are poor. On the other part if such income is between one and two baskets, people in that household are poor non-indigent.
What is the value of the basic food basket?
and extreme poverty line by year by area
(in pesos of November each year)
| AREA | LINE | 1987 | 1990 | 1992 | 1994 | 1996 | 1998 | 2000 | 2003 |
| Urban | indigent | 5079 | 9297 | 12,875 | 15,050 | 17,136 | | 20,281 | 21,856 |
| non-indigent poor | | 18,594 | 25,750 | 30,100 | 34,272 | 37,889 | 40,562 | 43,712 | |
| Rural | Indigente | 3914 | 7164 | 9,921 | 11,597 | 13,204 | 14,598 | 15,616 | |
| non-indigent poor | 6,850 | | 17,362 | 20,295 | 23,108 | 25,546 | 27,328 | 29,473 |
Source: Ministry of Planning, Social Division, ECLAC, Statistics Division.
The monthly cost per capita of the urban or rural CBA is used as an indicator of the satisfaction of basic human needs and to establish lines of poverty and destitution. The value assigned to the CBA 2006 is $ 21,856 urban and rural CBA $ 16,842. So, is defined as homeless persons residing in households, even if they spent all their income on food, not cover the cost of a basket. Households that do not cover the cost of two CBA are classified as non-indigent poor. The prices used to establish the cost of the basket are set by the National Statistics Institute (INE) to calculate the index Consumer Price (CPI).
The price of basic food basket up 12% in six months and pay only 3.3%. prices have had a major jump in the period are the bread (6%) and milk (50%). According to traders, the cost of vegetables would remain at current levels until November. Price of bread in Chile is on the average of A. America, which is $ 1.5 per kilo. With these factors, experts and project a 2007 CPI of 5%.
The prices of most basic goods are moving away from just displaying values earlier this year. According to a basic basket of food prepared in 2006 the Foundation for Overcoming Poverty (FSP), there is a fifty essential commodities, as measured by leading nutritional contribution. The price of this group have increased by 12.4% between January and July, nearly four times the 3.3% rise in salaries.
All figures are nominal and obtained from the National Statistics Institute (INE) and the Agricultural Research Office (PASO). The results show that an average basket cost $ 166,461 in July, nearly $ 18,000 more than the $ 148,166 in January. Compared on July 2006, the increase is 14.1% ($ 20,572 difference). During that period, wages rose 6.7%.
Data from the FSP, which has one of the latest studies, as the Household Budget Survey of INE data, 1997 - reflect a basket of basic needs satisfaction, following recommendations by international organizations nutrition . For example, a minimum daily consumption per person is 235 grams of bread and 46 grams of milk powder. The resulting value of each product, the newspaper multiplied it by 30 (for monthly consumption) and then by 4.4 (number of members per household). This exercise preclude differences in age, sex and physical activity for each family member. Among the products whose prices rose in six months highlighted the milk, bread and some vegetables. The value of the whole liquid milk increased by 50% in the period, rising from $ 3,067 per family in January to $ 4,596 in July. Powdered milk rose 36%, and the cheese did in 46%. As for vegetables, onions value jumped 77% in six months, the tomatoes, 42% beans, 30%, and potatoes, 23%. In most of these cases, the highest value is due to both seasonality and to frost, although the last of which (in August) will be reflected in the statistics for August and September.
The total basket cost more than what is perceived by a worker earning the minimum wage ($ 144 thousand). If so, the total cost of a basket of goods in Chile reached $ 366,214 in July, versus $ 325,965 in January. Among the items of greatest impact on the household budget, out of the food (meaning just under half the total), are the rates of basic services. According to INE, the average cost of a water bill in July reached $ 18,151, of light, 8372, the town gas, $ 19,908, and basic phone, $ 14,415.
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