Expenditure percentile method has advantages of social sharing,simple calculation,easy adjustment and operation comparing with other poverty line calculation method.It is more suitable for the current situation in China. We found that the interval of substitution rate for centre city should be 20 percent to 35 percent,and prefecture-level city should be 20 percent to 40 percent. It is not suitable to use expenditure method to calculate minimum living standard in rural areas now. The expenditure percentile method can be adjusted automatically.If the percentile relation between local average expenditure and minimum living standard had changed next year,it will be adjusted automatically.The temporary price subsidy can link with commodity price,when CPI increases over 3 percent for three consecutive months,the temporary consumption price subsidies (TCPS) mechanism will be triggered automatically.
