Estimating Poverty Threshold Using Consumer Price Index

Annual Food Threshold (2015)

14,957 for food PT
Assumption 1:
Estimation for poverty threshold using the percentage change in annual CPI for year 2017
CPI for Food
2015 2017 % Change
172.1 180.8 0.0505520046

Food Threshold 2015 X

Percentage Change of CPI 756.11
2017 Annual Food Threshold
Estimates 15,713.11
Monthly/Person 1,309.43
Daily/Person 50.36 Assumption: 26 working days in a month
Computation for Non-Food Requirement

Daily Food Threshold X 0.6983 35.1681479253

Daily Threshold 85.53

Daily Food
Threshold for a
Daily Food Threshold for a family of 5
family of 5 members (2015): members (2017):
249.2833333333 251.8126014988
49.8566666667 50.3625202998
Assumption 2
Estimation for poverty threshold using the percentage change in monthly CPI for January 2017 vs 2018
CPI
Jan 2015 Jan 2018 % Change
151.6 163.9 0.08113456

Poverty Threshold 2015

X Percentage Change of
CPI 1,213.53
2018 Annual Poverty 16,170.53
Threshold Estimates
Monthly/Person 1,347.54
Daily/Person 61.25 Assumption: 22 working days in a month

Daily for a family of 5

members
306.26
Estimating Poverty Threshold Using Consumer Price Index
Poverty Threhold (2015)
14,957 for food PT
Assumption 1:
Estimation for poverty threshold using the percentage change in annual CPI for year 2017
CPI
2015 2017 % Change
172.1 180.8 0.0505520046

Poverty Threshold 2015 X

Percentage Change of CPI 756.11
2017 Annual Poverty
Threshold Estimates 15,713.11
Monthly/Person 1,309.43
Daily/Person 43.65 Assumption: 26 working days in a month
30.4790615353 74.13
Daily for a family of 5
members:
249.2833333333 218.2375879657
49.8566666667
Assumption 2
Estimation for poverty threshold using the percentage change in monthly CPI for January 2017 vs 2018
CPI
Jan 2015 Jan 2018 % Change
151.6 163.9 0.08113456

Poverty Threshold 2015

X Percentage Change of
CPI 1,213.53
2018 Annual Poverty 16,170.53
Threshold Estimates
Monthly/Person 1,347.54
Daily/Person 61.25 Assumption: 22 working days in a month

Daily for a family of 5

members
306.26
INFLATION ACCOUNTING

Pn = P(1+i)^n

Pn Inflated Estimates
P Base 2015 estimates
i Inflation rate average from 2015-2018
n Difference between base year and selected year
(1+i)^n Inflation factor

To find 2018 Poverty Threshold for EV Monthly CPI for January 2015 to January 2018

Pn/Estimated 23,228.64
Poverty Threshold
for 2018 2015 2.4
P 21,304 2016 0.7
i 0.026 2017 2.8
n 3 2018 4.5

(1+i)^n 1.0903417127 Annual

Average
Inflation Rate
(AAIR)/100 0.02600

Annual 23,228.64
Monthly/Person 1,935.72
Daily/Person 80.65 Assumption: 24 working days in a month
Daily for Family of
5 members 403.27
Monthly Inflation Rate, Region VIII: January 2017- January 2018

January-17 2.8
February-17 3.5
March-17 3.7
April-17 4.1
May-17 3.9
June-17 3.8
July-17 3.8
August-17 4 Monthly Inflation Rate
September-17 4.1
October-17 4.2
November-17 4.2 4.1
December-17 4 3.5 3.7
January-18 4.5 2.8
nthly Inflation Rate, Region VIII: January 2017- January 2018
4.5
4.1 3.9 4.1 4.2 4.2 4
3.7 3.8 3.8 4
3.5
2.8