MACROVISION · PURCHASING POWER
What would a benefit be worth if prices change?
See how a fixed or indexed monthly benefit might buy a basket of goods and services under different scenarios.
An accounting illustration only, not an economic forecast or a benefit-policy recommendation. A uniform price change is a simplification; a personal consumption basket may change differently.
Rent and mortgage payments are set in shekels and do not fall with prices. So someone living on a benefit indexed to goods prices who rents can lose when prices fall. The research finding →
Starting values
Comparing three price scenarios
How is it calculated?
Benefit after the change = current benefit × (1 + change in the benefit). New basket cost = basket cost today × (1 + price change). Basket coverage = new benefit ÷ new basket cost. Purchasing power in today’s prices = new benefit ÷ (1 + price change).
The calculation leaves out eligibility, taxation, government financing, employment effects and differences between product prices. The scenarios are not probabilities or empirical estimates.
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