Consumer price adjustment under the microscope: Germany in a period of low inflation

We analyse the adjustment of retail and services prices in a period of low inflation, using a set of individual price data from the German Consumer Price Index which covers the years 1998 to 2003. We strong find evidence of time- and state-dependent price adjustment. Most importantly, the differences in ?unconditional? sectoral price flexibility are found to be linked to input price volatility.

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Year of publication:	2006
Authors:	Hoffmann, Johannes ; Kurz-Kim, Jeong-Ryeol
Publisher:	Frankfurt a. M. : Deutsche Bundesbank
Subject:	Lebenshaltungsindex \| Preisrigidität \| Preis \| Flexibilität \| Inflation \| Deutschland \| price rigidity \| price flexibility \| Consumer Price Index \| Germany

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Series:	Discussion Paper Series 1 ; 2006,16
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	514273666 [GVK] hdl:10419/19644 [Handle] RePEc:zbw:bubdp1:4355 [RePEc]
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; E31 - Price Level; Inflation; Deflation ; L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms
Source:	EconStor

Persistent link: https://www.econbiz.de/10010295804