Work

Rethinking UK Inflation: An Application of Engel Curves

Year: 2025

Type: conference-paper

Abstract: This paper investigates the accuracy of the UK Consumer Price Index (CPI and CPIH) in capturing the true cost of living from 2001 to 2023. Using an Engel curve framework, it examines whether official inflation measures systematically understate living costs, especially during periods of economic disruption. Findings suggest that both CPI and CPIH tend to underestimate inflation, particularly for low-income households, highlighting a potential downward bias in official statistics.

Source: The Proceedings of the International Conference on Business, Management and Finance.

DOI: 10.33422/icbmf.v2i1.1084

Author: Yoko Oguro

Institution: Meikai University

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Funder: Japan Society for the Promotion of Science

Award: An Analysis of Inflation Bias: Evidence from Japan and International Comparison