A1383
Title: When cheap gets costly: Tracking cheapflation in Italy during high and moderate inflation
Authors: Tiziana Laureti - University of Tuscia (Italy)
Niccolo Salvini - University of Tuscia (Italy)
Luca Secondi - University of Tuscia (Italy) [presenting]
Abstract: The phenomenon of cheapflation - where the prices of low-cost goods rise faster than those of premium alternatives - has drawn increasing attention as a driver of inflation inequality. While it has been widely observed during recent episodes of sharp price acceleration, less is known about its persistence during more moderate phases of inflation. The aim is to examine cheapflation in Italy across both high and moderate inflation contexts, drawing on millions of web-scraped food prices combined with official household expenditure statistics. By exploring territorial patterns in the relationship between rising prices of budget goods and the concentration of vulnerable households, the regressive nature of inflation beyond aggregate indicators is investigated. The contribution is to show how the unequal burden of inflation can remain significant even as overall inflationary pressures ease, with important implications for monitoring and policy.
