European Parliament Library

Inflation and Income Inequality :, Is Food Inflation Different?, James Walsh, Jiangyan Yu

There is an extensive literature noting that high inflation can add to income inequality, and a parallel literature assessing the effect of rising food prices on the poor. This paper attempts to combine these strands by dividing inflation into food and nonfood inflation and assessing whether food inflation affects income inequality differently from nonfood inflation. In an international sample and a sample of Chinese provinces, nonfood inflation exacerbates income inequality while the role of food inflation is more mixed. In a sample of Indian states broken down into urban and rural areas, we find that nonfood inflation adds to income inequality in both areas, while food inflation has a neutral to positive effect on income inequality in rural areas, providing support for the theory that rural wages may respond elastically to food prices
Table Of Contents
Cover; Contents; I. Introduction and Background; II. Stylized Facts; A. Inflation and Macroeconomic Data; B. Inequality Data; Figures; Figure 1: Cross Country: GDP Per Capita and Change of Gini, 2000-2010; Figure 2: Cross Country: Food Inflation and Change of Gini, 2000-2010; Figure 3: Cross Country: Non-food Inflation and Change of Gini, 2000-2010; C. China; Figure 4. China: Provincial GDP Per Capita and Change of Inequality, 2000-2005; Figure 5. China: Food Inflation and Change of Theil Index, 2000-2005; D. India; E. Other Data
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (23 p.)
Specific Material Designation
Form Of Item

Library Locations

  • EP Library Luxembourg

    Rue du Fort Thüngen, Luxembourg, L-1313, LU
  • EP Library Strasbourg

    7 Place Adrien Zeller, Allée du Printemps, Strasbourg, F-67070, FR
  • EP Library Brussels

    60 rue Wiertz, Brussels, B-1047, BE