Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/200569 
Year of Publication: 
2017
Series/Report no.: 
Working Paper No. 2017-13
Publisher: 
Federal Reserve Bank of Chicago, Chicago, IL
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.
Subjects: 
Inflation
Heterogeneity
JEL: 
D12
D30
E31
Document Type: 
Working Paper

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