Is there any inflationary effect to the $1.25/day figure that has been used since the 1980s? It's not clear from the article whether it's adjusted for inflation.
"PPP" refers to Purchasing Power Parity. The default option is the PPP rates for consumption in 2005 estimated by the World Bank’s Development Data Group.
So yes, it does account for inflation, assuming equal inflation across whatever basket of goods was chosen as the reference point for PPP.
I came here to ask the same thing.
Taking in consideration they use the US$1.25/day measurement since 1981 [1], today this value should be US$3.28/day [2] (based on US inflation between 1981 and 2015).
Given that, I'd love to know the real value. Maybe it is still a positive perspective, but I think it'd be more realistic (or, at least, accurate). :-)
Who is down-voting all the inflation related questions? This shouldn't have to be explained to someone with downvote-level karma, but disagreeing with a comment's point of view is not a good reason to downvote it.
