Economics, Econometrics and Finance
4 years ago

Study reveals frequent price changes driving inflation fluctuations across sectors.

RePEc: Research Papers in Economics
What do thirteen million price records have to say about consumer price rigidity
Laurent Baudry, Hervé Le Bihan, Patrick Sevestre, Sylvie Tarrieu

Paper Summary

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The study analyzed 13 million price records to understand how often prices change in France. They found that prices typically stay the same for about 8 months. Different types of products have different patterns of price changes. Price cuts happen almost as often as price increases, showing that prices can go down easily. Price changes are usually big. The frequency and size of price changes affect how much prices go up and down. Overall, prices can change depending on the time and the situation.