Monetary poverty in Peru decreased to 25.9% in 2021, down 4.2 percentage points compared to 2020 (30.1%), when many economic activities were partially paralyzed due to COVID-19, the
National Institute of Statistics and Informatics (INEI) reported on Thursday.
The report "Evolution of Monetary Poverty 2010–2021," prepared with results of the National Household Survey (ENAHO), indicates that the 2021 poverty rate has still not reached the level seen in 2019 (20.2%), moving 5.7 percentage points up from 2019.
The INEI explained that the poverty line is the monetary equivalent of the monthly cost of a basic food and non-food basket, which increased to S/378 (about US$99.3) per inhabitant in 2021, that is, persons whose monthly income is less than the amount indicated above are classified as poor.
In this case, the monthly cost of a basic basket for a household of four members is S/1,512 (about US$397) per month.
Likewise, the extreme poverty line, which considers only the cost of a basic food basket increased to S/201 (about US$52.8) per person in 2021, that is, people whose monthly per capita income does not cover the basic food basket are classified as extreme poor.
In this case, the monthly cost of a basic basket for a household of four members is S/804 (about US$211) per month.
The official measurement of poverty in Peru is based on per capita consumption, since this variable provides a more precise quantification of the living standards of what people and households buy, acquire, and consume.
In 2021, monthly average expenditure per capita was S/753 (about US$198), up 6.1% compared to the monthly average expenditure per capita in 2020; however, it decreased 10.7% compared to 2019.
(END) NDP/CNA/RMB/MVB
Published: 5/5/2022