Reassessment of Minimum Consumption Basket in 10 Years, But…

In Azerbaijan, the minimum consumption basket may be reassessed next year. This was discussed during a joint meeting of parliamentary committees.

The last changes to the consumption basket were made a decade ago. However, during this period, inflation has risen, and the cost of the minimum living standard has also increased. Moreover, some experts believe that the current minimum consumption basket in Azerbaijan requires significant updates, with the inclusion of additional goods and services.

Currently, the composition of the minimum consumption basket, approved by the Cabinet of Ministers on June 6, 2014, remains in force. According to the legislation, several ministries and state committees, in collaboration with NGOs, are required to reassess the basket every three years and submit their proposals to the Cabinet of Ministers.

The Ministry of Economy informed Turan that the composition of the minimum consumption basket is constantly monitored.

It was noted that a working group is also active on the issue: "The most recent meeting of the working group was held in 2021. Based on data provided by the State Statistics Committee and other institutions, the basket was reviewed, and it was decided to keep it unchanged. The basket will be reassessed in 2025 in line with the prevailing economic conditions."

Natig Jafarli, chairman of the opposition Republican Alternative (ReAL) Party and an economist, told Radio  Azadliq that the composition of the minimum consumption basket should have been revised long ago: "There are serious questions regarding the calculation methods and the composition of the basket in Azerbaijan."

According to the economist, in many countries, separate calculations are made for daily necessities: "In Azerbaijan, the minimum consumption basket includes hundreds of products and services, but it is ineffective. In reality, the average Azerbaijani citizen uses about 30 food products daily. The prices of these products are rising the most. However, their price increases have less impact on the overall basket calculation."

Jafarli argued that the government does not engage civil society or political forces in discussions about the methodology for determining the minimum consumption basket: "If the basket is reviewed next year, how and in what format will it be reviewed? What products and services will be added or removed? This remains unclear."

He added that if the standards are raised, the actual value of the minimum consumption basket in Azerbaijan will increase: "If the value increases, the poverty level will also rise. This contradicts the government’s rhetoric and policies. They have been adjusting figures to show a poverty level of 5% for many years. But this is not realistic. It is impossible for poverty rates to remain unchanged over 10–15 years. Proper calculations would reveal that poverty in Azerbaijan is much higher."

What’s in the Basket?

The food items included in the minimum consumption basket are categorized into three groups: "children," "working-age population," and "pensioners."

For a working-age individual, the annual allowance for meat and meat products is 32.9 kilograms, equating to 2.75 kilograms per month or 90 grams per day. The basket includes 97.2 kilograms of vegetables and melons per year, amounting to 265 grams daily.

The annual allowance for butter is 7 kilograms, or 19 grams per day. The basket also accounts for 150 eggs annually, which is less than half an egg per day. In contrast, the World Health Organization (WHO) recommends a daily egg intake of 1.5 eggs and 400 grams of fruits and vegetables.

The basket also specifies that six pairs of shoes are deemed sufficient for three years and six months.

The minimum living standard for 2024 is set at 270 AZN, compared to 125 AZN in 2014.