This was super interesting. It's well known that inflation is a typically bigger issue for lower income households than higher-income households. The explanation behind this phenomenon lies in the fact that this group has little savings on average and spends most of the income they generate. I thought this paper was going to be a rehash of those conclusions, BUT they had a completely different take on this.
All the charts/graphs in the paper were interesting, but included here is Chart 5, which shows how inflationary pressures evolve across, and relative to, each income bracket. Check out the middle of 2022 when inflation is relatively lower for higher income households, but climbing rapidly, again relatively, for the lower-income households. I have never seen data on inflation presented in this manner, and from the Minneapolis Fed to boot. I realize there is a bit of inflation fatigue out there, but for anyone still interested this paper is well worth 5 minutes of your time Happy Monday. FT