French companies slow to adjust prices, impacting consumer wallets.
French manufacturing companies adjust their prices infrequently, with the median firm changing prices once a year. They review prices more often than they change them, typically quarterly. Companies use different pricing rules based on time or state, influenced by the likelihood of changes in their environment. Price stickiness is mainly due to coordination failure and contracts, not menu costs. Prices are more resistant to lowering due to cost shocks, while they adjust more easily to demand changes.