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Price Rigidity in France: Information From Consumer Price Collections

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Author Info

  • Laurent Baudry

    (Banque de France)

  • Hervé Le Bihan

    (Banque de France)

  • Patrick Sevestre

    (Université Paris-XII )

  • Sylvie Tarrieu

    (Banque de France)

Abstract

Different indicators are calculated based on consumer price index (CPI) price collections for the 1994-2003 period in an endeavour to describe consumer price changes in France. The average weighted period of time between two price changes is approximately three quarters in the sectors covered by the database (65% of the CPI). Huge differences are found between outlet types and sectors: prices in the service sector change more rarely (generally once a year) than manufactured product prices (generally twice a year). Food prices and energy prices are more flexible. With the exception of the service sector, price decreases are virtually as frequent as price increases. Lastly, the average size of a price variation is large (at around 10%), but a not-inconsiderable proportion of small price variations is found (the median level of both price increases and decreases being approximately 5%).

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File URL: http://www.insee.fr/fr/ffc/docs_ffc/ES386b.pdf
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Bibliographic Info

Article provided by Institut National de la Statistique et des Etudes Economiques in its journal Economie et Statistique.

Volume (Year): 386 (2006)
Issue (Month): (March)
Pages: 37-57

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Handle: RePEc:crs:ecosta:es386b

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Keywords: Price Stickiness; Duration of Prices; Consumer Price Index; Frequency of Price Change;

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References

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  1. Fougère, Denis & Le Bihan, Hervé & Sevestre, Patrick, 2005. "Heterogeneity in Consumer Price Stickiness: A Microeconometric Investigation," CEPR Discussion Papers 5300, C.E.P.R. Discussion Papers.
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  8. Ben Eden & Jeff Campbell, 2004. "Rigid Prices: Evidence from US scanner data," 2004 Meeting Papers 461, Society for Economic Dynamics.
  9. Calvo, Guillermo A., 1983. "Staggered prices in a utility-maximizing framework," Journal of Monetary Economics, Elsevier, vol. 12(3), pages 383-398, September.
  10. Cecchetti, Stephen G., 1986. "The frequency of price adjustment : A study of the newsstand prices of magazines," Journal of Econometrics, Elsevier, vol. 31(3), pages 255-274, April.
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Citations

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Cited by:
  1. Dhyne, Emmanuel & Álvarez, Luis J. & Le Bihan, Hervé & Veronese, Giovanni & Dias, Daniel & Hoffmann, Johannes & Jonker, Nicole & Lünnemann, Patrick & Rumler, Fabio & Vilmunen, Jouko, 2005. "Price setting in the euro area: some stylized facts from individual consumer price data," Working Paper Series 0524, European Central Bank.
  2. Imbs, Jean & Jondeau, Eric & Pelgrin, Florian, 2011. "Sectoral Phillips curves and the aggregate Phillips curve," Journal of Monetary Economics, Elsevier, vol. 58(4), pages 328-344.
  3. Bilke, Laurent, 2005. "Break in the mean and persistence of inflation: a sectoral analysis of French CPI," Working Paper Series 0463, European Central Bank.
  4. Aucremanne, Luc & Dhyne, Emmanuel, 2004. "How frequently do prices change? Evidence based on the micro data underlying the Belgian CPI," Working Paper Series 0331, European Central Bank.
  5. Kurri, Samu, 2007. "Price changes in Finland: some evidence from micro CPI data," Working Paper Series 0728, European Central Bank.
  6. Erwan Gautier, 2007. "La dynamique des changements de prix de production en France : une analyse à partir des relevés de prix de production," Économie et Statistique, Programme National Persée, vol. 407(1), pages 3-26.
  7. Mónica Costa Dias & Daniel Dias & Pedro Duarte Neves, 2008. "Stylised features of consumer price setting behaviour in Portugal: 1992–2001," Portuguese Economic Journal, Springer, vol. 7(2), pages 75-99, August.
  8. Erwan Gautier, 2008. "The Changing Picture of Production Prices: an Analysis using Production Price Quotes," Economie et Statistique, Institut National de la Statistique et des Etudes Economiques, vol. 407, pages 3-26, April.
  9. Alvarez, Luis J. & Hernando, Ignacio, 2006. "Price setting behaviour in Spain: Evidence from consumer price micro-data," Economic Modelling, Elsevier, vol. 23(4), pages 699-716, July.

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