economy

definition of basic basket

It is called as basic basket to that set of foods that are presented in a certain amount that is considered to satisfy the calorie and protein needs of what is known as the average household: father, mother and two children.

Set of foods that minimally satisfy the dietary needs that a person demands

Now, it is important to note that the basic food basket implies a minimum of food, that is, it is the basics, it is what a family group needs in order not to fall into food need and a situation of poverty, but in no way consuming it all sufficient nutrients are being ingested.

From this it follows that it cannot be considered as an ideal diet and to be followed, but quite the contrary, since other foods must be added to it to make it complete.

By consuming it, a family is guaranteed, as we have pointed out, only not to fall into unsatisfied needs.

For example, it is that it cannot be used as a role model in what is known as nutritional education, not even to determine the food needs of a person or community.

Composition and calculation

Normally it is composed of: milk, eggs, rice, corn, cheese, coffee, bread, cereal, oil, sugars, vegetables, fruits, butter and meats, and is taken as a reference to the nutritional needs of an older adult between 30 and 59 years old.

The calculation of the basic food basket is carried out in relation to the information that the Central Bank shows regarding the prices observed by those products that are within the basic basket.

The amount of kilocalories that a typical household needs per day must be multiplied by the price of each product.

The sum of each of the foods yields the cost per day of a basic food basket.

When a person or family cannot cover: the basic food basket, clothing and the home, it will be located within a state of indigence.

Then, the value of the basic food basket is the one that marks the dividing line with indigence and undoubtedly stands as the basic instrument to measure poverty rates in the countries, because it will allow to determine the population that is below the line of poverty

Therefore, it is very important to have measurements in this sense that are reliable and representative in order to know for sure if a population can pay or not the expenses that the basic food basket consumes.

Knowing these values ​​will allow a government to know if the inhabitants can, with the average salary they earn, afford the basic food basket.

The scourge of inflation against the basic food basket

One of the main scourges that threaten access to this basket is inflation, which consists of the general and relevant increase in the prices of products and services, including those included in the basic basket, and which results in the depreciation of the National currency.

Meanwhile, to know this information, the Consumer Price Index, or CPI, should be used, which is the index from which the prices of a set of predetermined goods and services are valued.

In inflation scenarios, clearly, the poorest families cannot even afford the expenses of a basic food basket.

For example, it is said that the worst and most regressive tax that exists directly attacking the most vulnerable class is that of inflation.

Because of course, the rich will be affected by the considerable increase in prices but they will be able to continue buying them, while the poor will not be able to even buy the most basic.

Both the basic food basket and the inflation index, among others, are indicators prepared by public and technical bodies, which normally depend on the ministries of economy or finance and whose mission is to collect prices, for example, to later compile statistics. reliable in this sense, such as the value of a basic basket or the CPI.

These agencies are the ones that, based on this price survey, will establish the value of the basic food basket and it will be possible to determine from the average income of a typical family whether it can afford it or not.