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Inflation has Pushed Millions into Poverty in Asia, says Asian Development Bank

Manila: The Asian Development Bank (ADB) has stated that due to rising inflation and the impact of the COVID-19 pandemic, millions of people in Asia and the Pacific have fallen into extreme poverty as their basic living expenses have surged.

According to the annual report released by the Asian Development Bank on Thursday regarding Asia and the Pacific revealed that by 2022 an astounding 152 million people in developing Asia and the Pacific were living in extreme poverty. This figure is equivalent to 3.9 percent of the region’s population.

The report defines extreme poverty as living on less than $2.15 USD per day, based on 2017 prices, purchasing power parity and inflation.

The report further highlights that as the cost of living continues to rise, the crisis has disproportionately affected the poor, as they are unable to afford the high prices of necessities such as food and fuel. Women have also been disproportionately affected due to lower incomes compared to men.

The impact of rising prices on basic necessities and the economic downturn caused by the COVID-19 pandemic have combined to push a significant number of people in Asia and the Pacific into dire poverty.