The impact of the 2008 crisis on UK prices : what we can learn from the CPI microdata

Huw David Dixon; Kul B. Luintel; Kun Tian

This paper takes the locally collected price-quotes used to construct the CPI index in the UK for the period 1996-2013 to explore the impact of the crisis on the pricing behavior of firms. We develop a time-series framework which is able to capture the link between macro- economic variables (inflation and output) and the behavior of prices in terms of the frequency of price change, the dispersion of price levels and the dispersion of price-growth. Whilst these effects are present, they are small and do not have significant effects for monetary policy.

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Year of publication:	2014
Authors:	Dixon, Huw ; Luintel, Kul Bahadur ; Tian, Kun
Publisher:	Cardiff : Cardiff Univ, Cardiff Business School, Economics Section
Subject:	Price-spell \| steady state \| duration \| Verbraucherpreisindex \| Consumer price index