We analyse the adjustment of retail and services prices in a period of low inflation, using a set of individual price … data from the German Consumer Price Index which covers the years 1998 to 2003. We strong find evidence of time- and state …-dependent price adjustment. Most importantly, the differences in unconditionalʺ sectoral price flexibility are found to be linked to …

, namely corn, soybeans and sugar, and three cross pairs that included hybrids of the spot price of each of the agricultural … products and an ethanol futures price. Most of the spreads’ asymmetric adjustments generally happen during narrowing. The three …) spot show different longrun adjustments, arbitrage profitable opportunities and price risk hedging capabilities. The …