THE IMPACT OF CHEAPFLATION ON LIVING STANDARDS, SOCIAL INEQUALITY, AND ECONOMIC GROWTH
THE IMPACT OF CHEAPFLATION ON LIVING STANDARDS, SOCIAL INEQUALITY, AND ECONOMIC GROWTH

Summary/Abstract: This paper analyzes the phenomenon of cheapflation, characterized by a disproportionately higher increase in the prices of cheaper goods in the Republic of Srpska. Through an empirical analysis of data on consumer habits, prices, and social indicators, the paper examines the impact of this phenomenon on living standards, particularly for the most vulnerable population groups. A significant issue in the Republic of Srpska is the rising prices, especially of food, which are not evenly distributed, leading to a decline in the living standards of low-income citizens. The research aims to quantify the extent and intensity of cheapflation, analyze its causes and impacts on economic growth, and propose specific policies to mitigate its negative effects. The research questions focus on the differences in price increases between cheaper and more expensive goods, the key factors driving cheapflation, the impact on social inequality, and potential policy measures that could alleviate the negative consequences. The results indicate that cheapflation has significantly increased social inequality, emphasizing the need to implement policies aimed at enhancing competitiveness and supporting domestic production to protect the most vulnerable segments of society.

• Details
• Contents