between growing meals and energy prices In the wake of the Ukraine war as well as supply chain disruptions, the paper – titled ‘Addressing the Cost-of-Living Crisis in Developing Countries’ – estimates that around 71 million people may be pushed into poverty along the Caspian Basin , the Balkans and sub-Saharan Africa are expected to see maximum impact. It has advocated targeted and time-bound cash transfers as an effective tool.
FM Nirmala Sitharaman told reporters that the government’s interventions in the last three years, including free food grains to the poor and cash transfers to the poor, have helped reduce the risk to the poor. “Inflation in India will push 0% of the population below the poverty line of $1. 9 a day, just 0.02% down from $3. 2 a day and 0.04% the ones below $5. 5 a day is seen at risk. The overall impact as reported is negligible,” the FM said.
The study used the distribution of household income per capita over three income levels – $1, to benchmark and cost of living scenarios. 9 a day (World Bank standard for absolute poverty), $3. 2 and $5. 5. For sensitivity to poverty, the analysis uses a threshold of $13 per day.
Based on its assessment, Pakistan and Sri Lanka are among the countries in South Asia that all face high poverty impacts on the poverty line. “In these countries, on average, about 3% of the population may fall into poverty,” the report concluded.