When inflation was at 4.4% in June, households that spent their entire income to cover their living costs were burdened much more than those that, having double or quadruple the income, spent the same absolute amount – about 50% or 25% of their income – and saved or invested the rest.
Those households that were renters were burdened much more than households that owned their own home. Inflation clearly does not impose the same burden on everyone.
This reality is obscured because such an index is compiled based on a basket of products common to the poor and the rich, the young and the old, although consumption varies greatly depending on the demographic and income features of social groups.
This is a fact even though inflation in consumer goods is generally much greater than the average price hikes reflected in the ELSTAT or Eurostat index.
To detect the effect on different social categories, in several countries individual indices are compiled based on different consumption baskets for different groups of the population.
