IDEAS home Printed from https://ideas.repec.org/p/ipt/iptwpa/jrc130650.html
   My bibliography  Save this paper

The effect of rising energy and consumer prices on household finances, poverty and social exclusion in the EU

Author

Abstract

This report contains an empirical analysis based on microdata from European household surveys to provide a preliminary assessment of the potential social consequences of increasing energy and consumer prices in the EU. It uses detailed information on recent price developments and the structure of household expenditures to quantify the extent of living cost increases and purchasing power losses in a granular and customised manner across different household types and income groups in the EU. The Report is also the first attempt to calculate the potential effects of rising prices on indicators of material and social deprivation and measures of absolute poverty. It finds that, since early 2021, inflation is predicted to have increased material and social deprivation in the EU by about 2 percentage points on average, while the corresponding increase in absolute poverty may be closer to 5 percentage points. The adverse social effects of inflation are significantly larger in many Central and Eastern European Member States, especially among disadvantaged and/or vulnerable groups. This is likely to further deepen existing gaps in poverty and social exclusion between EU15 and non-EU15 countries, and calls for a strong and coordinated policy response.

Suggested Citation

  • MENYHERT Balint, 2022. "The effect of rising energy and consumer prices on household finances, poverty and social exclusion in the EU," JRC Research Reports JRC130650, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc130650
    as

    Download full text from publisher

    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC130650
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roberto Barrella & José Carlos Romero & Lucía Mariño, 2022. "Proposing a Novel Minimum Income Standard Approach to Energy Poverty Assessment: A European Case Study," Sustainability, MDPI, vol. 14(23), pages 1-21, November.
    2. Bardazzi, Rossella & Gastaldi, Francesca & Iafrate, Francesca & Pansini, Rosaria Vega & Pazienza, Maria Grazia & Pollastri, Corrado, 2024. "Inflation and distributional impacts: Have mitigation policies been successful for vulnerable and energy poor households?," Energy Policy, Elsevier, vol. 188(C).
    3. Mohammad Fazle Rabbi & Tarek Ben Hassen & Hamid El Bilali & Dele Raheem & António Raposo, 2023. "Food Security Challenges in Europe in the Context of the Prolonged Russian–Ukrainian Conflict," Sustainability, MDPI, vol. 15(6), pages 1-20, March.
    4. Ivan Ackermann & Doina Radulescu & Doina Maria Radulescu, 2024. "Unveiling the Energy Price Tag – Assessing the Degree of Regressivity of Household Energy Expenditures Among European Countries," CESifo Working Paper Series 11390, CESifo.
    5. Algieri, Bernardina & Kornher, Lukas & von Braun, Joachim, 2024. "The Changing Drivers of Food Inflation – Macroeconomics, Inflation, and War," Discussion Papers 340561, University of Bonn, Center for Development Research (ZEF).
    6. Ricciutelli, Francesco, 2024. "Energy Inflation and Consumption Inequality," MPRA Paper 120899, University Library of Munich, Germany.
    7. Pallotti, Filippo & Paz-Pardo, Gonzalo & Slacalek, Jiri & Tristani, Oreste & Violante, Giovanni L., 2023. "Who bears the costs of inflation? Euro area households and the 2021–2022 shock," Working Paper Series 2877, European Central Bank.
    8. Menyhért, Bálint, 2024. "Energy poverty in the European Union. The art of kaleidoscopic measurement," Energy Policy, Elsevier, vol. 190(C).

    More about this item

    Keywords

    poverty and social exclusion; inflation; household finances; material and social deprivation; energy poverty; absolute poverty;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ipt:iptwpa:jrc130650. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Publication Officer (email available below). General contact details of provider: https://edirc.repec.org/data/ipjrces.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.