There Is No Evidence Inflation Is Hitting the Poor Hardest - 1 views
-
Marenne M on 22 Apr 14This article describes how the CPI works and how inflation affects different groups of people with different incomes differently. Ben Casselman claims that inflation is higher for the poor households, by looking at the poor separately instead of as an average with the rest of the CPI. This way he says that he can show that the poor spend differently than the rich and that therefore the inflation is higher for them. This is not evidence, however, because inflation is about the rising of prices, and the prices rise equally no matter whether you are rich or poor. The only difference is the impact it has on the different groups.