Christoph Bauner

2023-2024 ISSR Scholars Project Title: Poverty and Inflation - Differential Effects Across Package Sizes

This project is intended to analyze differences in inflation rates across package sizes. Low-income households have been shown to more frequently purchase small packages and less frequently purchase large packages than households with higher incomes. Preliminary evidence suggests that prices for small packages have been increasing significantly faster than those for bulk items in recent years, a difference the official inflation rate published by the Bureau of Labor Statistics does not necessarily consider. Yet, as the inflation rate is used to adjust the poverty line and welfare payments, the question of its accuracy for products frequently purchased by low-income households is vital. This project aims to analyze how widespread differential price increases by package size are and how they affect welfare recipients.