Inflation Differentials among Czech Households
AbstractInflation rates have traditionally been measured by the annualized percentage change in the price level of a market basket of consumer goods and services purchased by households. The market basket represents the spending patterns of average household. However, households differ in their spending patterns and there are differences in the price changes of various goods and services. Therefore, different households experience different inflation rates. This paper finds that these differences have been significant in the Czech Republic during the period 1995-2010. Only around 60 % of households actually experienced an inflation rate that was similar to the national average. Furthermore, the higher the average inflation rate over time, the lower the percentage of households whose inflation rate was similar to that average. The main determiners of inflation were expenditures for housing and energy and, especially for low-income households and pensioners, expenditures on food and non-alcoholic drinks. In most years, pensioners and low-income households faced significantly higher inflation rates than the average rate for the whole population.
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Bibliographic InfoPaper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp508.
Date of creation: Feb 2014
Date of revision:
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households; inflation; inflation differentials; relative prices;
Other versions of this item:
- Pavel Hait & Petr Jansky, 2014. "Inflation Differentials among Czech Households," Working Papers IES, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies 2014/08, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Apr 2014.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-04-29 (All new papers)
- NEP-EUR-2014-04-29 (Microeconomic European Issues)
- NEP-MAC-2014-04-29 (Macroeconomics)
- NEP-MON-2014-04-29 (Monetary Economics)
- NEP-TRA-2014-04-29 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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