AZE.US
Azerbaijan’s official living minimum is again under public scrutiny as rising prices continue to widen the gap between formal calculations and the real cost of daily life.
The living minimum in the country is currently set at 300 manats, or about $176. But a simple supermarket experiment shows that this amount may no longer reflect the basic needs of an average household.
Journalists from a local TV channel visited a supermarket and filled a basket with essential food products included in the consumer basket. Only food items were added, and at least one kilogram of each product was taken.
The final bill came to 115 manats, about $68.
According to the report, this basic food basket would be enough to cover the needs of a family for roughly two weeks. The amount does not include household chemicals, hygiene products, non-food items, medicines, transport, utilities, clothing or other necessary expenses.
Residents interviewed in the report said food prices have increased sharply in recent years and that a large share of family income is now spent on everyday essentials.
“There are basic goods that you simply cannot avoid buying. Depending on the family, food expenses alone can reach 300, 400 or 500 manats a month. If clothing, utilities and other costs are included, the total becomes much higher,” residents said.
Economist Rashad Hasanov said the current consumer basket was approved about 10 years ago and no longer reflects modern living conditions.
He noted that the existing basket provides for just one hour of internet use per day for one person. In reality, internet access has become a basic part of work, education, communication and daily life.
Hasanov also said many real household expenses are not properly reflected in the calculation of the living minimum. For example, tutoring expenses for children can in many cases exceed the officially approved living minimum.
“Today, the living minimum should not be 300 manats. It should be around 450-500 manats per person,” Hasanov said.
Another issue, according to the economist, is the lack of regional differentiation. The expenses of residents in Baku, regional cities, settlements and rural areas differ significantly, but the official calculation does not fully reflect those differences.
Transport costs are another example. The current calculation assumes two trips per day for a working person, one trip to work and one trip back. But in Baku, many people have to use several types of public transport to reach work or school, which increases daily spending.
Experts estimate that for a family of four, minimum monthly expenses may reach around 1,137 manats, or about $669.
Of that amount, roughly 300 manats may go toward food, while another 500-600 manats may be spent on transport, utilities and other services.
The remaining money is often not enough to cover unexpected expenses, clothing, medicine, family obligations and other everyday needs.
As a result, Azerbaijan’s official living minimum is increasingly seen not as a reflection of the real cost of living, but as a formal figure that has fallen behind actual household expenses.
AZE.US