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This paper studies the distributional consequences of a systematic variation in expenditure shares and prices. Using European Union Household Budget Surveys and Harmonized Index of Consumer Prices data, we construct household-specific price indices and reveal the existence of a pro-rich inflation in Europe. Particularly, over the period 2001-15, the consumption bundles of the poorest deciles in 25 European countries have, on average, become 10.5 percentage points more expensive than those of the richest decile. We find that ignoring the differential inflation across the distribution underestimates the change in the Gini (based on consumption expenditure) by up to 0.03 points. Cross-country heterogeneity in this change is large enough to alter the inequality ranking of numerous countries. The average inflation effect we detect is almost as large as the change in the standard Gini measure over the period of interest.

This paper studies the distributional consequences of a systematic variation in expenditure shares and prices. Using European Union Household Budget Surveys and Harmonized Index of Consumer Prices data, we construct household-specific price indices and reveal the existence of a pro-rich inflation in Europe. Particularly, over the period 2001-15, the consumption bundles of the poorest deciles in 25 European countries have, on average, become 10.5 percentage points more expensive than those of the richest decile. We find that ignoring the differential inflation across the distribution underestimates the change in the Gini (based on consumption expenditure) by up to 0.03 points. Cross-country heterogeneity in this change is large enough to alter the inequality ranking of numerous countries. The average inflation effect we detect is almost as large as the change in the standard Gini measure over the period of interest.

This paper studies the distributional consequences of a systematic variation in expenditure shares and prices. By using European Union Household Budget Surveys and Harmonized Index of Consumer Prices data, we construct household-specific price indices and reveal the existence of a pro-rich inflation in Europe. Particularly, over the period 2001-15, the consumption bundles of the poorest deciles in 25 European countries have on average become 10.5 percentage points more expensive than those of the richest decile. We find that ignoring the differential inflation across the distribution underestimates the change in the Gini (based on consumption expenditure) by up to 0.03 points. Cross-country heterogeneity in this change is large enough to affect the ranking of the countries in inequality measures.

In this note, we provide measures of the effects of high rates of inflation in food pricesand the costs of housing on Canadian households reliant on government-provided income assistance. Inflation puts these households at risk because little of their income is indexed to inflation. That which is indexed to inflation varies by province and by family composition. In most provinces, protection from inflation depends on periodic ad hoc adjustments to income support payments, adjustments that are sometimes separated by many years.A notable exception is Quebec, where nearly full indexation ensures recipients of income support are protected from inflation. In other provinces, the general lack of full indexation means that during periods of inflation, Canadians reliant on social assistance are subjectto two types of risk, one economic and one political. The economic risk is due to the fact inflation threatens to cause them to endure a catastrophic fall in what is already a low standard of living. The political risk arises because in most provinces, whether inflation results in a fall in living standards is entirely dependent upon whether politicians choose to provide periodic, unscheduled increases in social assistance incomes, euphemistically referred to as income "enrichments." With a single stroke of a legislative pen the political risk can be eliminated and the economic risk minimized. The high rates of inflation currently being experienced add urgency to this consideration. We show that deteriorating health, increased reliance on food banks and rising rates of homelessness are just some of the inevitable consequences of delay.

In this study the author discusses the reasons for inflation in Nigeria and the ways in which incomes are effected by, and in turn influence, the inflationary spiral. He analyses the measures which have been taken to implement incomes policies and shows that if such a policy is to succeed it must be applied firmly and fairly to all income-earners. A comparative study of incomes policies in other African countries highlights how easy it has often been for influential interest groups to escape incomes control

There is an extensive literature noting that high inflation can add to income inequality, and a parallel literature assessing the effect of rising food prices on the poor. This paper attempts to combine these strands by dividing inflation into food and nonfood inflation and assessing whether food inflation affects income inequality differently from nonfood inflation. In an international sample and a sample of Chinese provinces, nonfood inflation exacerbates income inequality while the role of food inflation is more mixed. In a sample of Indian states broken down into urban and rural areas, we

The income tax, which has been regarded as the chief weapon in the battle against inflation, has come to be scrutinized as a possible factor in inducing inflation. Prior to World War II, the comparatively low rates of corporate and personal income taxation made such taxes appear rela tively unimportant. High rates of taxation, however, have been carried over to the postwar period and, consequently, have served to focus attention upon the effect of such taxation upon economic growth and stability, distribution of income, and the efforts made by corporations and individuals to pass along the higher rates of income tax as well as the effect that these taxes may have on savings and investment. Until fairly recently, it was generally expected that business corpo rations and the stockholders bore the burden of the corporate income tax. This absorption theory has been giving ground to the shifting theory which maintains that under present-day competitive conditions, the corporation is able to shift taxes in the form of higher prices. Empirical studies have noted an increasing tendency for businessmen to say that they take in come tax increases into consideration when setting prices. With respect to the personal income tax, there is growing reason for believing that work incentives and willingness to make risk investments are adversely affected and that efforts are made to pass along higher income taxes in the form of higher wages and salaries.