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Consumer Price Behavior in Mexico Under Inflation Targeting: A Microdata Approach

  • Carla Ysusi
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    In this paper we do a statistical analysis of the Mexican Consumer Price Index microdata set to characterize the rigidities of the price setting process in the different sectors of the Mexican economy. The microdata set goes from July 2002 to December 2009. Broadly, results show that there exists a considerable heterogeneity in the price setting behavior across different sectors and over time. Evidence was found that when big shocks affect inflation, there is a strong co-movement of the fraction of the firms that change prices with the level of inflation.

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    File URL: http://www.banxico.org.mx/publicaciones-y-discursos/publicaciones/documentos-de-investigacion/banxico/%7B8D7AEC68-86FE-E997-7EF9-BBB1560C002E%7D.pdf
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    Paper provided by Banco de México in its series Working Papers with number 2010-09.

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    Date of creation: Jun 2010
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    Handle: RePEc:bdm:wpaper:2010-09
    Contact details of provider: Web page: http://www.banxico.org.mx

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