Frequency of price changes strongly correlated to inflation, says Riksbank
The size of price increases remained stable in Sweden from 2010–18
The frequency of price changes is strongly correlated to inflation, researchers at Sveriges Riksbank say in new analysis.
The size of price increases is less relevant, they find. In fact, when companies revise up their prices, they tend to make the same size increases over time.
These are the main findings of research work analysing inflation developments in Sweden during the period 2010–18. Overall, authors Jacob Ewertzh, Mathias Klein and Oskar Tysklind analysed 5 million price observations
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