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Absolute poverty means that a person’s income is below the absolute poverty threshold. The threshold is calculated on the basis of equivalised disposable income that takes into account the composition of the household (the weight of the first adult member is 1, the weight of each additional member aged at least 14 years is 0.7 and the weight of everyone under 14 years of age is 0.5), i.e. the total household income is divided by the sum of equivalence scales of household members. The absolute poverty threshold is the estimated subsistence minimum, which represents the financial cost of meeting

Being at risk of poverty means that a person’s income is below the at-risk-of-poverty threshold. The threshold is calculated on the basis of equivalised disposable income that takes into account the composition of the household (the weight of the first adult member is 1, the weight of each additional member aged at least 14 years is 0.5 and the weight of everyone under 14 years of age is 0.3), i.e. the total household income is divided by the sum of equivalence scales of household members. The at-risk-of-poverty threshold is 60% of the median equivalised annual disposable income of household

The consumer price index (CPI) expresses the change in the prices of consumer goods and services. In order to calculate the consumer price index, it is first necessary to identify what an average private consumer regularly buys. The expenditures are then categorised according to the Classification of Individual Consumption According to Purpose, and shares in the total index, called index weights, are calculated. For the calculation of the index, it is also necessary to choose the goods and services for which price changes will be monitored. These are called representative goods. Then, it is