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Minimum Living Level and Consumer Price Index: What's in a name?

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  • Johan Martins

Abstract

The Minimum Living Level (MLL) denotes the minimum financial requirements of members of a household to maintain an acceptable living standard, which is above the Poverty Line. Sufficient quantities of relevant expenditure items based on minimum health standards are allowed for when calculating the MLL, but rational expenditure on them is assumed. The MLL is measured in monetary value. The Consumer Price Index (CPI) is a measurement of changes in the prices over time of a basket of typical consumer goods and services and is measured by an index or percentage. The basket of expenditure items used in the CPI depends on household expenditure surveys. This article sets out to differentiate between the MLL, CPI and the Poverty Line, since the latter and the MLL are sometimes used in the same context in South Africa.

Suggested Citation

  • Johan Martins, 2003. "Minimum Living Level and Consumer Price Index: What's in a name?," Development Southern Africa, Taylor & Francis Journals, vol. 20(2), pages 197-212.
  • Handle: RePEc:taf:deveza:v:20:y:2003:i:2:p:197-212
    DOI: 10.1080/03768350302954
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    Cited by:

    1. Anker, Richard,, 2006. "A new methodology for estimating internationally comparable poverty lines and living wage rates," ILO Working Papers 993855513402676, International Labour Organization.
    2. repec:ilo:ilowps:385551 is not listed on IDEAS
    3. Darlington Mushongera & Precious Zikhali & Phindile Ngwenya, 2017. "A Multidimensional Poverty Index for Gauteng Province, South Africa: Evidence from Quality of Life Survey Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(1), pages 277-303, January.

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