Inflation Uncertainty and Health

Objective (s): Consumption expenses and unemployment can be considered as macroeconomic indicators that affect in health. Therefore, considering the inflationary conditions and its fluctuation which leads to uncertainty in the economy, the purpose of this study was to investigate the effects of inflation fluctuation on consumption and unemployment as key indicators in public’s health. Methods: In this study, the fluctuation and uncertainty of inflation was estimated using Stochastic Differential Equation (SDE). For surveying the shocks of inflation fluctuation on consumption and unemployment, the impulse respond (IR) that is so useful in structural Vector Auto Regressive (SVAR) models were used. The source of quarterly data was Statistical Center of Iran (S.C.I) from 2001 to 2020. Results: The results indicated the fluctuation of inflation was effective and meaningful on unemployment by 0.04 and consumption by (-0073). Conclusion: Based on these two indicators, it can be concluded that inflation fluctuation reduces health in the community.