Karadi, Peter; Amann, Jurgen; Sánchez Bachiller, Javier; … - 2023
We compare supermarket price setting in the US and the euro area and assess its impact on food inflation. We introduce … flexibility of supermarket inflation in the US relative to the euro area. We argue that the driving force behind both factors is …-inflation volatility between the US and the euro area as well as around a third of the difference between the inflation responses to the …