| Name: | Description: | Size: | Format: | |
|---|---|---|---|---|
| 2.21 MB | Adobe PDF |
Authors
Advisor(s)
Abstract(s)
This paper studies the price-setting behaviour in food products, using the microdata underlying
the Portuguese Consumer Price Index (CPI). We document that, on average, more than onequarter of food prices changed every month and half displayed price spells shorter than 5.3
months. Positive price changes were more frequent and had a higher magnitude than price
decreases. There is a strong heterogeneity across type of industry and outlet. We find that,
from 2009 to 2019, food inflation was primarily driven by the frequency of price changes
rather than the magnitude, and price changes were more frequent at the producer than at the
consumer level, but in a lower magnitude. Finally, we report that frequency and magnitude
estimates are higher when using daily online price data, meaning that intra-month patterns in
price dynamics, not captured by the official inflation statistics, are relevant.
Description
Keywords
price stickiness price-setting behaviour consumer prices microdata inflation
Pedagogical Context
Citation
Martins, Fernando e João Quelhas (2024). "Consumer price-setting behaviour : evidence from Food CPI Microdata". REM Working paper series, nº 0345/2024
Publisher
ISEG – REM (Research in Economics and Mathematics)