American Economic Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
New Facts on Consumer Price Rigidity in the Euro Area
American Economic Journal: Macroeconomics
vol. 16,
no. 4, October 2024
(pp. 386–431)
Abstract
Using CPI micro data for 11 euro area countries over 2010–2019, we document new findings on consumer price rigidity in the euro area: (i) the average frequency of price changes is 12 percent; (ii) the distribution of price changes is highly dispersed, with frequent large and small changes; (iii) price changes are more frequent in January; and (iv) the overall size of price changes rises with inflation, but their frequency does not; these changes in the size are driven by movements in the fraction of price changes that are increases, not by the absolute size of price increases or decreases.Citation
Gautier, Erwan, Cristina Conflitti, Riemer P. Faber, Brian Fabo, Ludmila Fadejeva, Valentin Jouvanceau, Jan-Oliver Menz, Teresa Messner, Pavlos Petroulas, Pau Roldan-Blanco, Fabio Rumler, Sergio Santoro, Elisabeth Wieland, and Hélène Zimmer. 2024. "New Facts on Consumer Price Rigidity in the Euro Area." American Economic Journal: Macroeconomics, 16 (4): 386–431. DOI: 10.1257/mac.20220289Additional Materials
JEL Classification
- E31 Price Level; Inflation; Deflation
- E52 Monetary Policy
- F33 International Monetary Arrangements and Institutions
- L11 Production, Pricing, and Market Structure; Size Distribution of Firms
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