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New evidence on consumer price rigidity in Poland

Author

Listed:
  • Paweł Macias

    (Narodowy Bank Polski)

  • Damian Stelmasiak

    (Narodowy Bank Polski)

  • Karol Szafranek

    (Narodowy Bank Polski)

  • Krzysztof Makarski

    (Narodowy Bank Polski)

Abstract

Nominal rigidities play a central role in monetary policy transmission, shaping how inflation and real activity respond to various shocks. Using a large longitudinal dataset of granular price data for Poland covering 2000–2024, we contribute to the literature on price stickiness across several dimensions. First, we document the price-setting behaviour in Poland. Second, we show how the process was affected by the turbulent post-COVID-19 period and Russia’s full-scale invasion of Ukraine, evaluating the importance of the intensive and extensive margins of price adjustments. Third, we distinguish between sticky and flexible sectors, revealing heterogeneity in prices response to economic variables and shocks. We also compare the price-setting process in Poland with those in the euro area and the US. Finally, we complement these analyses with simulations performed on a two-sector DSGE model. Overall, we provide new, comprehensive evidence on price rigidity and discuss its implications for monetary policy transmission.

Suggested Citation

  • Paweł Macias & Damian Stelmasiak & Karol Szafranek & Krzysztof Makarski, 2026. "New evidence on consumer price rigidity in Poland," NBP Working Papers 383, Narodowy Bank Polski.
    • Handle: RePEc:nbp:nbpmis:383
    Note: We would like to thank Statistics Poland for providing access to the micro price data underlying the compilation of the CPI in Poland. We are grateful to the anonymous reviewer for careful reading and constructive comments. We also thank Mathias Klein and the participants of the internal NBP seminar for their helpful feedback and suggestions. The views expressed in this paper are solely ours and do not necessarily reflect the position of Narodowy Bank Polski. This research did not receive any specific grant from funding agencies in the public, commercial, or non-profit sectors. We declare no conflict of interest. All remaining errors are our own.
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    Keywords

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    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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