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  • We utilize the Greek Statistical Agency’s Household Budget Survey on 6.5 thousand households in 2004/2005 to construct separate inflation indices for the poor (21.7% of the sample, with income below 60% of median income) and rich (29.5% of the sample with income above 140% of median income).
  • Over the period 1990-2007, there is no difference in the average inflation the two groups face, although after 1/1/2001, in 54 months the poor faced a higher inflation than the rich, whereas in only 19 months the rich faced a higher inflation than the poor.
  • Since the introduction of the euro in 1/1/2001, the poor face greater inflation uncertainty than the rich and this may explain their discontent with the euro.