Price setting in the euro area : some stylised facts from individual producer price data /

This paper documents producer price setting in 6 countries of the euro area: Germany, France, Italy, Spain, Belgium and Portugal. It collects evidence from available studies on each of those countries and also provides new evidence. These studies use monthly producer price data. The following five s...

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Bibliographic Details
Other Authors: Dias, Daniel
Format: Book
Language:English
Published: Frankfurt am Main : Deutsche Bundesbank, 2007
Series:Discussion paper (Deutsche Bundesbank). Series 1: economic studies no. 03/2007
Subjects:
Online Access:http://www.bundesbank.de/Redaktion/EN/Downloads/Publications/Discussion_Paper_1/2007/2007_03_16_dkp_03.pdf?__blob=publicationFile

MARC

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490 1 |a Discussion paper. Series 1: economic studies ;  |v no. 03/2007 
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520 3 |a This paper documents producer price setting in 6 countries of the euro area: Germany, France, Italy, Spain, Belgium and Portugal. It collects evidence from available studies on each of those countries and also provides new evidence. These studies use monthly producer price data. The following five stylised facts emerge consistently across countries. First, producer prices change infrequently: each month around 21% of prices change. Second, there is substantial cross-sector heterogeneity in the frequency of price changes: prices change very often in the energy sector, less often in food and intermediate goods and least often in non-durable non- food and durable goods. Third, countries have a similar ranking of industries in terms of frequency of price changes. Fourth, there is no evidence of downward nominal rigidity: price changes are for about 45% decreases and 55% increases. Fifth, price changes are sizeable compared to the inflation rate. The paper also examines the factors driving producer price changes. It finds that costs structure, competition, seasonality, inflation and attractive pricing all play a role in driving producer price changes. In addition producer prices tend to be more flexible than consumer prices. 
650 4 |a FIJACION DE PRECIOS  |9 151 
650 4 |a FORMACION DEL PRECIO  |9 5689 
651 4 |a ALEMANIA  |9 178 
651 4 |a FRANCIA  |9 568 
651 4 |a ITALIA  |9 311 
651 4 |a ESPAÑA  |9 553 
651 4 |a BELGICA  |9 213 
651 4 |a PORTUGAL  |9 862 
700 1 |9 5690  |a Dias, Daniel 
830 0 |9 4690  |a Discussion paper (Deutsche Bundesbank).  |p Series 1: economic studies  |v no. 03/2007 
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