Income not main determinant of inflation variances – ECB study
Research claims “fixed shopping basket” method not helpful for measuring differences across households
It’s where people live and the products they choose, rather than how much they make, that determines how much inflation they experience, research from the European Central Bank (ECB) shows.
The study, which examined inflation levels in France and Germany, finds that differences in the prices paid for the same product within a country account for around 40% of inflation discrepancies. However, the choice of which product to buy within a given brand and the choice of brands with a given quality
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