回覆: Re: Effects of inflation
in general, inflation can lead to a deterioration in the distribution of income
and another reason why low income earners have to spend more is because of the CPI. the CPI generally measures the prices of consumer goods and services according to their significance for the average Aussie households (it's the definition in the book), which means it measures the level of inflation by measuring the prices of some necessities or things important in people's daily activities. So, oncethe CPI increases , or in other words, the prices of those necessities increase, people's spending on those things will also increase (b'cause they have to spend money on those things, I don't think anyone can live without food...lol). So, yeah, that generally means that low income earners will spend a higher proportion of their incomes on these necessities while the pace of the increase of their wages can not match the pace of the increase in prices.