AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Look Within: Demographic Grouping Masks Inflation Inequality
AEA Papers and Proceedings
(pp. 562–567)
Abstract
The recent inflation surge prompted renewed assessments of inflation inequality. Examinations of inflation by income or other demographic groups point to a shrinking or stable inflation gap between high- and low-income households in 2022. At the same time, research using scanner data shows grocery inflation becoming much more disparate with rising inflation. I show that aggregating households into demographic groups not only masks the majority of heterogeneity, but fails to capture important dynamics between that heterogeneity and the level of inflation.Citation
O’Flaherty, Kelsey. 2026. "Look Within: Demographic Grouping Masks Inflation Inequality." AEA Papers and Proceedings 116: 562–567. DOI: 10.1257/pandp.20261062Additional Materials
JEL Classification
- C43 Index Numbers and Aggregation; leading indicators
- D12 Consumer Economics: Empirical Analysis
- D63 Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- E31 Price Level; Inflation; Deflation
- L81 Retail and Wholesale Trade; e-Commerce