LESSONS OF INFLATION IN URBAN HOUSEHOLDS: A COMPARATIVE STATISTICAL ANALYSIS

Abstract

This article investigates the impact of inflation and rising prices of consumer goods on households in 2022 and 2023, which may signal the approaching period of stagflation in developing countries, similar to the Great Depression in the United States. The article explores the devaluation of major global currencies, including local currencies, although their inflation rates are considered lower than the cost of living increase. The authors argue that cities and rural areas adapt differently to changes in the standard of living. The objective of this article is to compare the parameters of the consumer basket based on relative assessments of the average monthly or annual cost of a consumption item in relation to the average wage level per month or year. Data on average indicators are obtained from statistical estimates of the cost of living in the United States during various years of the 20th and 21st centuries. The article utilizes the "Handbook of Labor Statistics," a popular compendium published in the United States that provides accessible information on prices and the standard of living in simple figures for households. Based on the conducted research, the article identifies an inflation readiness index for households, with the focus on urban centers as economic hubs. The research methodology employed is empirical, as well as document analysis.