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Submitted by Anonymous on
Just a few points on the framing of this article. Obviously large price increases in food prices do indeed hit the poor very hard. But overall inflation usually hits the middle classes and wealthy to a greater (proportional) extent than it does for the poor, because the poor have few financial assets whose value is eroded by inflation. Transport can go either way; if it is due to oil price increases, then that often hits the middle classes and wealthier more (particularly in countries with significant diesel generation) because the poor consume little energy (and much of that often comes from wood or charcoal). So it might make more sense to frame this as being an issue about food shocks than an issue about inflation. There are good reasons why central banks typically focus on core inflation (which excludes highly volatile agricultural prices) and don't respond to a one-time commodity supply shock with contractionary policy.