Laczó Ferenc

Additions to a better understanding of inflationary processes

In this study, I examine the inflationary effect of consumer behaviour in order to increase the credibility of inflation data. However, this effect can only be described by two different average forms, since changes due to the income effect and changes due to the substitution effect have different averaging properties. To do this, it was necessary to divide the price relatives and volume relatives into changes due to two different effects. With the help of the method, it was possible to examine how Hungarian and German consumers reacted to the 2008 financial crisis in their food consumption. It was also possible to measure how much stronger low-income consumer groups reacted to price changes in Hungary in the 2010s than high-income groups and how much they managed to avert at least part of the inflationary effect.

LXX. évf., 2023. June (613 - 646. O.), DOI:10.18414/KSZ.2023.6.613, Study

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