Price discounts and cheapflation during the post-pandemic inflation surge / by Alberto Cavallo and Oleksiy Kryvtsov.: FB3-5/2024-31E-PDF
"We study how within-store price variation changes with inflation, and whether households exploit it to attenuate the inflation burden. We use micro price data for food products sold by 91 large multi-channel retailers in 10 countries between 2018 and 2024. Measuring unit prices within narrowly defined product categories, we analyze two key sources of variation in prices within a store: temporary price discounts and differences across similar products. Price changes associated with discounts grew at a much lower average rate than regular prices, helping to mitigate the inflation burden. By contrast, cheapflation—a faster rise in prices of cheaper goods relative to prices of more expensive varieties of the same good—exacerbated it. Using Canadian Homescan Panel data, we estimate that spending on discounts reduced the change in the average unit price by 4.1 percentage points, but expenditure switching to cheaper brands raised it by 2.8 percentage points"--Abstract, page ii.
Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.942686&sl=0
| Department/Agency | Bank of Canada, issuing body. |
|---|---|
| Title | Price discounts and cheapflation during the post-pandemic inflation surge / by Alberto Cavallo and Oleksiy Kryvtsov. |
| Series title | Staff working paper = Document de travail du personnel, 1701-9397 ; 2024-31 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Format | Electronic |
| Electronic document | |
| Note(s) | ISSN assigned to different series. "Last updated: August 16, 2024." Includes bibliographical references. Includes abstracts in English and French. |
| Publishing information | [Ottawa] : Bank of Canada = Banque du Canada, 2024. ©2024 |
| Author / Contributor | Cavallo, Alberto, author. |
| Description | 1 online resource (ii, 31, 20 pages) : colour illustrations. |
| Catalogue number |
|
| Subject terms | Food prices -- Econometric models. Inflation (Finance) -- Econometric models. Consumption (Economics) -- Econometric models. Aliments -- Prix -- Modèles économétriques. Inflation -- Modèles économétriques. Consommation (Économie politique) -- Modèles économétriques. |
Request alternate formats
To request an alternate format of a publication, complete the Government of Canada Publications email form. Use the form’s “question or comment” field to specify the requested publication.- Date modified: