Kennedy, Kieran A. and Bruton, R. and Kirwan, F. and Durkan, J. (1975) The Consumer Price Index and Different Household Expenditure Patterns. Quarterly Economic Commentary Special Article, October 1975. [Working Paper]
Abstract
The Consumer Price Index ( CPI) is now used increasingly as the major reference point in adjusting pay and social benefits to "compensate" for inflation. This raises many interesting questions about the precise meaning of compensation, its feasibility and its effects as well as the suitability of the CPI for the purpose. This paper, which is part of work in progress on these issues, examines how price changes affect different types of household by virtue of differences in their expenditure patterns.
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