Why is it important to adjust the poverty threshold every year?

Question

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The poverty threshold is the income level below which a person or a family is considered to be living in poverty. To accurately measure poverty, the threshold needs to reflect changes in the cost of living due to changing prices. For example, if the poverty threshold stays the same and the cost of living increases, then it becomes more difficult for people to meet their basic needs and the poverty rate may appear to decrease even though people's economic situation has not improved. Adjusting the poverty threshold for inflation each year helps to ensure that it more accurately reflects the economic reality facing low-income families. While changes in the minimum wage, level of in-kind transfers, taxes, and family size can all impact poverty, they are not the primary reason for adjusting the poverty threshold each year.

Why Is It Important to Adjust the Poverty Threshold Every