COMPENSATING INCOME VARIATION FOR ASSESSING THE INFLATION IMPACT ON UKRAINIAN HOUSEHOLDS WELL-BEING

The article is devoted to the development and approval of analytical tools, which should improve the sensitivity of common methods of household well-being by assessing the changes in the structure of consumer expenditures. For this purpose, it is proposed to use the concept of compensating variation (CV) and Slutsky's approach to graphic modelling and formal expression of the compensating variation. Application of the developed toolkit for assessing the dynamics of the Ukrainian households' well-being for the period 2014-2021 made it possible to clarify the distribution of inflationary pressure between households with different income levels. Groups of households were singled out, which due to the specific structure of their consumer expenditures (their high concentration on essential goods and services, the prices of which are growing faster than the aggregate consumer price index) find themselves in the position of "outsiders" and face a lack of growth nominal incomes, even in order to maintain consumption volumes (economic welfare) at the level of the basic period. Approbation of the proposed tools confirmed its analytical potential, in particular with regard to highlighting the contribution of certain product groups to the dynamics of household well-being and clarifying the features of the dependence between the dynamics of household income and the rate of growth of their economic well-being.