The Basic Commodities Rise in Prices in Connection to Average Income

The article presents an overview of the rise in prices of selected consumer basket items in the Slovak republic over a 13-year period, correlating them with the average monthly nominal income.The analysis tracks income increases and links to the purchasing power of the population.The article compares the rate of growth and observes which items reacted unusually, despite expectations of a different trend.It is an overview article that illustrates changes over time, which affect us all, as basic commodities, such as food, cannot be excluded from our lives. Paper's objective(s) and research backgroundThe aim of the study is to gain an overview of the development of basic food items and goods tracked by the Statistical Office of the SR in its consumer basket between 2010 and 2022.The interest lies in determining the rate of growth and identifying those food items and goods that experienced the highest changes during the observed period in connection to average monthly income, as well as pinpointing those whose prices remained relatively stable throughout the period under review.Data/Methods Data: Datacube of the Statistical Office of the Slovak republic for the basic commodities defined in the consumer basket and average nominal monthly income between 2010 and 2022 Methods: Univariate (description statistics and correlation) and multivariate (fuzzy c-mean clustering) statistical methods Conclusions Statistical analyses conducted on the development of basic food items and goods revealed two distinctive trends.The first cluster predominantly comprises items whose consumption is unavoidable, encompassing Groceries, and partially Energy and Transport.These items face a notable surge in prices, aligning with the increase in average nominal monthly income.Conversely, the second cluster primarily includes categories such as Clothing and Footwear and Selected Household Items, characterized by less pronounced price increases compared to the first cluster.Certain items within this cluster have experienced price reductions compared to the base year.Items falling within the fuzzy exhibit a distinct trend differing from both the first and second clusters.This includes primarily Grocery items, such as granulated sugar.Not all items of the consumer basket positively correlated with average nominal monthly income.