⁦Poverty line, price index and inflation⁩

⁦Statistical indices sum up a whole society in one number⁩. The ⁦poverty line⁩ ⁦is the least income one person needs to live for a month⁩. ⁦The book takes it as half the⁩ الوسيط ⁦of the monthly incomes of the people⁩. ⁦Someone who earns less than this line is below the poverty line⁩.

The ⁦consumer price index⁩ ⁦says how the price of a fixed basket of goods (bread, rice, milk⁩ ...) ⁦compares with a base year⁩. ⁦The base year has index 100⁩: ⁦index = (cost of the basket this year ÷ cost in the base year) × 100⁩.

Inflation ⁦is a general rise in prices⁩. ⁦The inflation rate of a year is the percentage change of the index from the year before⁩. ⁦If a salary stays the same while the index rises, the same money buys less⁩.