[6] Recent research by Central Bank staff published yesterday is an example of applying a distributional lens to economic analysis. [7] Drawing on data from the Household Finance and Consumption Survey, the Article examines the impact of price-driven increases in spending on food, energy, rent and mortgage interest payments for different households across the income distribution.
[8] In doing so, it explores the distributional impact of the current, and expected, consumer price increases and of our monetary policy response, on household economic resilience. From the perspective of central banks, resilience is an important concept to measure. The level of financial resilience, related to household or firm indebtedness, is crucial for our financial stability mandate.