The impact of the recent inflation surge across households

Alina Bobasu, Virginia Di Nino and Chiara Osbat

Economic Bulletin Articles, 2023, vol. 3

Abstract: This article presents evidence on the distributional effects of the recent surge in inflation on households. Households experience inflation differently depending on their spending allocation. When the prices of essential goods rise, low-income households are particularly affected. Households also have different exposures to inflationary shocks depending on the income they allocate to consumption, their income risk and the composition of their wealth. In the current inflationary episode, the resilience of the labour market and the provision of fiscal support have so far tempered some of the adverse distributional consequences of high inflation on social welfare. JEL Classification: E01, E21, E31, E64, F41

Keywords: inequality; Inflation; terms of trade (search for similar items in EconPapers)
Date: 2023-05
Note: 261931
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbart:2023:0003:2

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