Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Chicago
Working Paper Series
Inflation at the Household Level
Greg Kaplan
Sam Schulhofer-Wohl
Abstract

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.


Download Full text
Cite this item
Greg Kaplan & Sam Schulhofer-Wohl, Inflation at the Household Level, Federal Reserve Bank of Chicago, Working Paper Series WP-2017-13, 17 Sep 2017.
More from this series
JEL Classification:
Subject headings:
Keywords: Inflation; heterogeneity; households; low income
For corrections, contact Bernie Flores ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal