South Africa's Price Setting Behavior Unveiled: Impact on Monetary Policy
The article examines how prices were set in South Africa from 2001 to 2007 using detailed consumer price data. By analyzing how often prices changed, increased, or decreased, as well as the size and duration of these changes, the study provides a clearer picture of pricing behavior in the country. The results show that price changes vary widely across different product categories in South Africa, highlighting the diverse nature of the economy. Comparisons with other countries reveal unique patterns in South Africa's pricing conduct. This research aims to improve our understanding of how pricing behavior impacts monetary policy decisions in the country.