The Agency of Statistics under the President of Uzbekistan announced the updated minimum consumer spending (MCS) for the population. This indicator, used to determine the poverty line, was increased by 3.2%, from 648,000 to 669,000 soums (from $49.9 to $51.5, or by $1.6) per person per month, or from 21,300 to 22,000 soums (from $1.64 to $1.69) per day.
According to the law, the agency must update this figure annually by 20 January. However, the announcement came on 4 February.
The last increase in MCS was on 30 April 2024, when it rose by 4.3% ahead of tariff hikes for gas and electricity. Before that, the adjustment was made on 20 January of last year (+9.3%).
The MCS is calculated according to the price levels of food, non-food products and services, that is inflation. In 2024, the inflation reached 9.8%, while MCS grew only by 7.7%. The agency explains this gap by the different consumption patterns of households surveyed for poverty assessment, where food products dominate.
In 2024, food prices increased by 2.4% year-on-year, non-food products by 7.7% and paid services by 26.7%.
С 2022 года критерий среднедушевого дохода в месяц, применяемый при признании семьи малообеспеченной через информационную систему “Единый реестр социальной защиты”, приравнен к минимальным потребительским расходам.
Since 2022, the per capita income criterion for recognizing a family as low-income in Uzbekistan is equated to MCS. Certain benefits and social payments must not be lower than MCS.
The MCS accounts for a person’s daily needs in food, non-food goods and services, serving as a baseline for calculating daily budgets.
According to the Agency of Statistics, the global practice of using minimum consumption levels as the poverty line aims to:
- identify target populations in need of financial and social assistance;
- improve the effectiveness and precision of poverty reduction strategies and monitor them continuously;
- use this criterion to determine the minimum pension and benefits, as well as other forms of financial aid for low-income families.
In the future, Uzbekistan plans to introduce a multidimensional poverty index to more accurately assess living conditions and develop targeted poverty reduction measures.