Inflation burden for population groups with different levels of income

Currently the consumer price index is the most important statistical indicator for decision-making in economics, especially in the sphere of money-and-credit relations. Despite the fact that this index measures only the change in prices of consumer goods and services purchased by households, it is widely used by public administration bodies and the Central Bank to determine target inflation indicators. At the same time, the change in the price of goods and services used in the calculation of the index has a differential impact on different categories of population. The main hypothesis of the study is as follows: inflation rate for different segments of population varies significantly depending on the level of income and consumer preferences. Based on the data of budget surveys of households in the Vologda Oblast it has been found that unequal distribution of income among the population is not decreasing, and it has a significant impact on the dynamics of real disposable money incomes of the poorest groups and on the decline in the purchasing power of their income. The results of the study reveal that the bulk of consumer spending of the poorest population falls on the purchase of food, essential goods, and payment of rent and utilities, characterized by higher growth of prices during the study period. It is concluded that, on average, the inflation rate for the rich categories of the population is significantly lower than for the poor. As a consequence, this leads to increased socio-economic inequality.