This paper assesses the political situation, the wider macroeconomic context, and developments in the cost of minimum expenditure basket (MEB) and its food components.
A currency devaluation means that imports will get more expensive and this might trickle down to domestic retail prices, reducing the purchasing power of households, especially the vulnerable ones. The analysis in each section presents the current situation (status quo) and forecasts for 2021. Furthermore, two main scenarios are presented to understand how purchasing power of households might be affected by the interplaying multiple factors.
