Abstract
This study explores the relationship between inflation and income inequality from a global perspective, analyzing how inflationary pressures affect the distribution of income across different economic strata. Using cross-country data from both developed and developing nations, the research highlights the regressive impact of inflation, which disproportionately affects lower-income households due to their higher reliance on cash income and limited access to inflation-hedging assets. The study further examines the role of institutional quality, monetary policy frameworks, and social protection systems in mediating this relationship. The findings reveal that inflation exacerbates income inequality in countries with weak institutions and inadequate policy responses, while robust fiscal and monetary mechanisms can cushion the adverse effects. This global analysis underscores the importance of inclusive economic policies that target inflation control while protecting vulnerable populations, particularly in the wake of recent global shocks.
The author(s) appreciates all those who participated in the study and helped to facilitate the research process.
The author(s) declared no conflict of interest.
This is an Open Access Research distributed under the terms of the Creative Commons Attribution License (www.creativecommons.org/licenses/by/2.0), which permits unrestricted use, distribution, and reproduction in any Medium, provided the original work is properly cited.
© 2025, Saharan D & Meena R
Responding Author Information
Saharan D & Meena R @ sruthi@paradoxpublications.com
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