Black-white differences in inflation: 1974-1991

Food's budget share for blacks fell substantially relative to that of white s from 1974 to 1991. Much of this decline cannot be explained by improvemen ts in blacks' CPI-deflated income or any other variables. I attribute this unexplained fall in food's share (much larger for blacks than whites) to an unmeasured rise in income. In the case of whites, the unmeasured rise in r eal income is attributable to CPI bias. In the case of blacks, I believe th at in addition to CPI bias there is a pattern of declining race-specific pr ice premia from 1974-1991. (C) 2001 Academic Press.