The Heterogeneous Impact of Inflation on the Financial Condition of Russian Households

The increase in the price level is unevenly distributed among different groups of households depending on their socio-economic characteristics. This research is designed to study the heterogeneous impact of inflation on different income groups of the population. We have managed to show that main differences in the level of individual inflation are related not only to the structure of the consumer basket, but also to the price level that varies for different income groups. Intergroup basis price indices and intertemporal food price indices were estimated using data from the RLMS sample survey for 2003-2022. By looking at income-differentiated food inflation we were able to estimate real incomes of the population by decile income groups and to identify which groups were less resilient to economic shocks and were most severely affected by the impact of food price changes.