Inflation for the poorest 20% of the population was almost two percentage points higher in 2022 than inflation for the wealthiest 10% of the population, a new study has shown.
Of course, although the difference subsequently decreased and almost disappeared thanks to the decline in inflationary pressures, it does not mean in any way that the situation of the poorest households improved.
“The inflationary shock of the 2021-2022 period consolidated a situation where the poorest households face a consistently higher average price level compared to the richest,” notes the study by Giorgos Ioannidis, titled “Income, Age, Consumption Practices and Inflation,” which is published in the latest issue of the Economic Developments journal of the Center for Planning and Economic Research (KEPE).
According to the analysis, while the average annual inflation in 2022 was 9.6%, inflation for the poorest 20% of the population was 10.4% – i.e. 0.8 percentage points higher than the annual average.
In the same year, inflation for the wealthiest 10% of the population was 8.5%, 1.9 percentage points lower than the inflation of the poorest.
In 2023 and 2024, the differences between income groups were very small, around 0.1%.
However, this does not mean that the rich became poorer or that the poor became richer.
“The equalization of annual inflation rates in 2023 and 2024 resulted in the consolidation of inequality, it did not cause a deterioration or an improvement,” the study points out.