An average household comprising two working adults and two children living in the City of Buenos Aires needed roughly AR $23,796 to stay above the poverty line in October, according to the latest report issued by the Buenos Aires City Government’s statistics agency. The figure represents a 6.6 percent increase compared to the previous month and is 1.5 percent higher than the inflation rate for the Greater Buenos Aires area released by the Indec last week.
The same household also needed AR $11,763 to not be considered destitute – a 8.2 percent increase compared to September 2018.
This can mostly be explained by the fact that the price of the goods comprising the Total Basket (CBT), which determines the poverty line, increased more than the other goods and services that are taken into account by the stats agency to determine the average inflation rate.
Moreover, it is also worth mentioning that both the CBT and the Food Basket (BCA), which determines the destitution rate, assume that rent does not have to be paid. Presumably, this is the case because rent prices vary considerably depending on the size and location of the place the household inhabits, and the consequent impossibility to establish an average.
Considering that a census from 2016 indicated almost 36 percent of the city’s population rents the property they live in, and use in average roughly 50 percent of their monthly income to face this expense, the amount of households that do not earn the necessary amount to stay above the rates established by the stats agency is actually much higher.