It is almost certainly the case - with all due respect to @BootstrapCook - that inflation measures are not underestimating cost of living pressures for those with the least (at the moment) Let me explain - a 🧵 1/
@BootstrapCook I've spent the morning seeking the evidence from the official data for inflation being higher for the poorest - and in fact came up with the opposite 5.1% for the poorest tenth 5.5% for the richest tenth The real story is that it is high for everyone 2/
@BootstrapCook And the story of inflation's rise through 2021 is also one of shared pain rather than concentrated pain among the poorest Here each line is inflation for each income decile (10th of the population ranked by income) 3/
@BootstrapCook I agree - there is real pain and it will always be felt most among those with the least. But it is not a fault of inflation measurement
@resplendentKid @BootstrapCook Because those with the least have no savings or spare income to squeeze That does not mean they are facing higher price rises
@ChrisGiles_ @resplendentKid @BootstrapCook Other economists are saying that prices of supermarket basic lines can increase faster as there is no brand premium to eat the cost of increases, they already cost as little as they can afford to. So when supply chain issues arise or ingredient prices increase, the shoot up.
@ChrisGiles_ @resplendentKid @BootstrapCook I don't really take to numbers, but I can't find anything in your statistics that disproves or takes this phenomenon into account? Because the above stats don't compare the same item at various price points (value vs standard brand vs luxe brand).