Measuring Inflation Inequality in India

Rohan Bansal and Prachi Bansal
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Rohan Bansal: Reserve Bank of India
Prachi Bansal: O.P. Jindal Global University

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Abstract: This paper is the first attempt to track the inflation rates of the distribution of Indian households based on consumption weights of different fractiles of rural and urban households from 2015 to 2024. Computing the consumption expenditure shares of different fractiles of Indian households-from the poorest to the richest-and the inflation faced by them, we show that the volatility of inflation is higher for the poor vis-à-vis the rich households and has persistently remained higher for the poor households. This paper argues that this inequality of inflation and high volatility is anti-poor and requires immediate policy intervention.

Keywords: Inequality; Inflation; Monthly Per Capita Consumption Expenditure (MPCE); Inflation volatility; India; Food Inflation; Distribution (search for similar items in EconPapers)
Date: 2025-05
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-05500861v1
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