What makes prices sticky? Some survey evidence for the United Kingdom

Quarterly Bulletin 1999 Q3
Published on 01 September 1999

By Ian Small, and Tony Yates of the Bank’s Monetary Assessment and Strategy Division.

This article uses the Bank’s price-setting survey to investigate what might make prices more or less sticky. It discusses the impact of competition; whether price changes are prompted by cost or demand shocks; if price stickiness is related to the characteristics of firm’s customers; whether price changes vary if goods are sold abroad or into the domestic market; and, finally, whether prices are more sticky downwards than upwards. The article finds that all of these factors appear to influence how sticky firms say their prices are.

PDFWhat makes prices sticky? Some survey evidence for the United Kingdom


Other Quarterly Bulletin 1999 Q3 articles

Was this page useful?
Add your details...