Inflation and Price Flexibility
Published in European Economic Review, 2025
Using UK consumer price microdata, we show that time-varying aggregate price flexibility induces significant non-linearity in inflation dynamics, with important implications for the transmission of shocks and the conduct of monetary policy.
Recommended citation: Winkelmann, Y., Petrella, I., and Santoro, E. (2025). "Inflation and Price Flexibility." European Economic Review.