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Inflation Differentials Based on Heterogenous Consumption Baskets of Slovak Households

Author

Listed:
  • Peter Tóth

    (Faculty of Economics and Business, University of Economics in Bratislava)

  • Samuel Holinga

    (Faculty of Economics and Business, University of Economics in Bratislava)

  • Richard Kali?

    (Faculty of Economics and Business, University of Economics in Bratislava)

Abstract

This paper examines the empirical distribution of individual inflation rates derived from household-specific consumption baskets and investigates the relationship between these rates and the socio-economic characteristics of Slovak households. Utilizing household budget survey data and a detailed breakdown of HICP inflation indices from the peak of the recent inflationary shock in January 2022, we calculated household-specific consumption basket weights and individual inflation rates. Due to diverse consumption patterns within the sample, our findings indicate that multi-person households with children and retired households experience the highest levels of inflation. In contrast, wealthier households are significantly less exposed to inflation, owing to a smaller portion of their budget allocated to food and energy. The empirical distribution revealed a range of individual inflation rates, with variations of up to 7.8 percentage points below and 7 percentage points above the official HICP inflation rate. These findings are relevant for designing targeted social policies aimed at reducing poverty and income inequality.

Suggested Citation

  • Peter Tóth & Samuel Holinga & Richard Kali?, 2024. "Inflation Differentials Based on Heterogenous Consumption Baskets of Slovak Households," Proceedings of Economics and Finance Conferences 14516466, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iefpro:14516466
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    More about this item

    Keywords

    Inflation; Household expenditures; Consumption baskets; Slovakia;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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