The brief’s key findings are:
- Today’s high inflation rates raise the question of how inflation impacts households differently by income.
- To explore this issue, the analysis combines data from the Consumer Price Index (CPI) and the Consumer Expenditure Survey.
- The results show that low- and high-income households face roughly similar inflation rates for items included in the CPI.
- However, the rich can afford to save more, so a sizable share of their income is not exposed to inflation today.
- While they will eventually spend their savings, they will have years to rearrange their spending patterns.