Examining the Behaviour of Individual UK Consumer Prices

  title={Examining the Behaviour of Individual UK Consumer Prices},
  author={Philip D. Bunn and Colin Ellis},
  journal={Wiley-Blackwell: Economic Journal},
This article examines how UK consumer prices behave, using two databases with millions of price observations: the microdata that underpin official Consumer Prices Index data and a database of supermarket prices. Prices do not change continuously but our key finding is the marked heterogeneity in the data. That is not consistent with standard microeconomic foundations that typically form the basis of macroeconomic policy models. Declining hazard functions and the distribution of price changes… 

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