Abstract: Studying the import price index of different income groups is crucial for the measurement of the changes in the living costs of different income groups and for the revelation of the price effect of international trade. By constructing the structural theoretical framework of import price index for specific income groups from the heterogeneity perspective and combining the alternative elastic hybrid estimation method, this paper makes use of the data of import products from CEPII-BACI database and the data of Chinese Urban Household Survey to measure the import price index of different income groups and analyze the degree of import price inflation of different income groups in China for the first time. The findings show that the import price indexes of different income groups have an upward trend. The middle-income groups and the low-income groups have suffered the highest import price inflation, and the rapid increase of the import price index of manufactured goods is the main reason for the low- and middle-income groups suffering higher import price inflation. While implementing the strategy of expanding imports and building a new dual-cycle development pattern, it is necessary to prevent the rise in import prices from causing a greater negative impact on the cost of living of the low- and middle-income groups and aggravating their vulnerability; and the corresponding public welfare policies should be implemented, so as to strengthen their ability of response to trade shocks.

Key words: different income groups, price effect, heterogeneity, import price index, public welfare