Some Evidence on the Adjustment of Producer Prices
AbstractWe document producer price adjustment using a low-inflation micro price dataset. On average 24% of prices adjust each month, with an average increase/decrease of 6%. Producer prices adjust more frequently than consumer prices, but their size of adjustment is typically smaller. Sectoral heterogeneity in the frequency of price adjustment is strongly related to heterogeneity in the cost structure. Fluctuations in aggregate producer price inflation occur to a large extent through variation in the relative share of upward and downward price adjustment. Copyright � The editors of the "Scandinavian Journal of Economics" 2008 .
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.
Volume (Year): 110 (2008)
Issue (Month): 3 (09)
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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442
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