NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Inflation at the Household Level

Greg Kaplan, Sam Schulhofer-Wohl

NBER Working Paper No. 22331
Issued in June 2016, Revised in August 2017
NBER Program(s):Economic Fluctuations and Growth, Labor Studies, Monetary Economics

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.

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Document Object Identifier (DOI): 10.3386/w22331

Published: Greg Kaplan & Sam Schulhofer-Wohl, 2017. "Inflation at the Household Level," Journal of Monetary Economics, . citation courtesy of

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