In the October economic bulletin, the BdP outlines the
uneven impact that rising inflation can have on households, disaggregating the
composition of household expenditure by income quintile and age group.
In the analysis of the banking regulator, it appears that
the differentiated impact is linked to the evolution of the prices of the
different goods and services and their weight in consumption of each family.
"The fact that the high inflation estimated for
lower-income families predominantly results from the evolution of prices of
essential goods, with inelastic demand, has more severe implications than the
same inflation for higher-income families, which reflects a greater
contribution of goods and services whose consumption can be more easily
substituted or postponed", explains the BdP.
The institution led by Mário Centeno also points out that in
the face of a negative shock in purchasing power, "lower income families
have a more limited ability to smooth consumption, given that they have a lower
savings rate and have less wealth".
" Inflation hitting low income families hardest", outstanding insight from the Bank of Portugal!
By Greg from Other on 08 Oct 2022, 10:32
What a revelation the most stupid of comment I have ever read, maybe the statement goes with that Portugal will have a booming and no inflation economy next year
Please wake up.
By Graham from Porto on 08 Oct 2022, 12:19