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Inflation Variability Across Australian Households: Implications for Inequality and Indexation Policy

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  • Marcel van Kints
  • Robert Breunig

Abstract

We examine the consumer price inflation experiences of Australian households across the income distribution using Australian Bureau of Statistics data and prices and methodology from the national consumer price index. Across the period 2011–18, we find that the lowest‐income households have experienced the largest inflation and those at the top have experienced the least inflation. These differences in inflation experience are completely driven by alcohol and tobacco. When we remove alcohol and tobacco, we find that there is little variation in the inflation experiences of households across the income distribution.

Suggested Citation

  • Marcel van Kints & Robert Breunig, 2021. "Inflation Variability Across Australian Households: Implications for Inequality and Indexation Policy," The Economic Record, The Economic Society of Australia, vol. 97(316), pages 1-23, March.
    • Handle: RePEc:bla:ecorec:v:97:y:2021:i:316:p:1-23
    DOI: 10.1111/1475-4932.12575
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    References listed on IDEAS

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    1. Atkinson, Anthony B., 2015. "Inequality: what can be done?," LSE Research Online Documents on Economics 101810, London School of Economics and Political Science, LSE Library.
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    Cited by:

    1. Olegs Krasnopjorovs, 2022. "Whether Low-Income Households and Retirees Face Higher Inflation? Evidence from Latvia," Post-Print hal-03861129, HAL.
    2. Danielle Wood & Iris Chan & Brendan Coates, "undated". "Inflation and Inequality: How High Inflation is Affecting Different Australian Households," RBA Annual Conference Papers acp2023-02, Reserve Bank of Australia, revised Nov 2023.

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