Age Disaggregated CPI Research and Policy Proposal

When we talk about inflation, we usually imagine a single number that tells us how prices are changing across the entire economy. But that number hides something important. Not everyone experiences inflation the same way.

Under the mentorship of a Boston College economics professor, I set out to build the first generationally disaggregated Consumer Price Index (CPI) for South Korea. Using KOSIS household expenditure data, I constructed subgroup indices for households under 50 (U50) and over 50 (O50). I then ran independent-samples t-tests to measure whether differences in inflation were statistically significant.

The results showed clear generational divides:

• Older households (O50) carried heavier inflation burdens in essentials and health.

• Younger households (U50) felt inflation most in education, restaurants, and entertainment.

Decomposition analysis confirmed that structural differences in spending patterns were not marginal. The “headline CPI” overlooked the fact that young people and older people were living in very different economies. 

This work was published in the International Journal of Social Relevance & Concern (IJRSC), where I outlined both the methodology and the implications for policymaking.

Building on those findings, I proposed a Youth CPI policy that would measure inflation specifically for younger generations. By making generational price burdens visible, the Youth CPI could inform fairer wage negotiations, student aid adjustments, and budget allocations.

The proposal passed the initial review stage by the Seoul Metropolitan Government and is currently under experimental review by Statistics Korea. It is early, but I see this as an important step toward making economic policy more representative.

For me, this project was not just about building a model. It was about asking a basic question: Whose reality does our data reflect? If the answer is “everyone,” then sometimes it reflects no one.

My hope is that this work sparks further dialogue on how we measure and respond to inflation in ways that capture the lived experiences of all generations.