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Inflation at the Household Level / Greg Kaplan, Sam Schulhofer-Wohl.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Kaplan, Greg.
Contributor:
National Bureau of Economic Research.
Schulhofer-Wohl, Sam.
Series:
Working Paper Series (National Bureau of Economic Research) no. w22331.
NBER working paper series no. w22331
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2016.
Summary:
We use scanner data to estimate inflation rates at the household level. Households' inflation rates have an annual interquartile range of 6.2 to 9.0 percentage points. Most of the heterogeneity comes not from variation in broadly defined consumption bundles but from variation in prices paid for the same types of goods. Lower-income households experience higher inflation, but most cross-sectional variation is uncorrelated with observables. Households' deviations from aggregate inflation exhibit only slightly negative serial correlation. Almost all variability in a household's inflation rate comes from variability in household-level prices relative to average prices, not from variability in aggregate inflation.
Notes:
Print version record
June 2016.

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