Consumer Price Behaviour in Italy: Evidence from Micro CPI Data

48 Pages Posted: 6 May 2005

See all articles by Giovanni Veronese

Giovanni Veronese

Bank of Italy

Silvia Fabiani

Bank of Italy

Angela Gattulli

Bank of Italy - Research Department

Roberto Sabbatini

Bank of Italy

Date Written: March 2005

Abstract

This paper investigates the behaviour of consumer prices in Italy by looking at micro data in the attempt to obtain a quantitative measure of the unconditional degree of price rigidity in the Italian economy. The analysis focuses on the monthly frequency of price changes and on the duration of price spells, also with reference to different types of products and outlets. Prices tend to remain unchanged on average for around 10 months; duration is longer for nonenergy industrial goods and services and much shorter for energy products. Price changes are more frequent upward than downward, in larger stores than in traditional ones. When the geographical location of outlets is accounted for, price changes display considerable synchronisation, in particular in the service sector.

Keywords: consumer prices, nominal rigidity, frequency of price change

JEL Classification: D21, D40, E31

Suggested Citation

Veronese, Giovanni Furio and Fabiani, Silvia and Gattulli, Angela and Sabbatini, Roberto, Consumer Price Behaviour in Italy: Evidence from Micro CPI Data (March 2005). ECB Working Paper No. 449. Available at SSRN: https://ssrn.com/abstract=668249

Giovanni Furio Veronese (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy
+49 621 189 1886 (Phone)
+49 621 189 1884 (Fax)

Silvia Fabiani

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Angela Gattulli

Bank of Italy - Research Department ( email )

Via Nazionale 91
00184 Roma
Italy

Roberto Sabbatini

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

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