Discount pricing – the strategy of reducing regular prices through quantity, seasonal, cash or promotional discounts, coupons, customer loyalty programs and the like – plays an important role in retail pricing and is widespread business practice in virtually all retail industries in Austria....

This study examines price setting in Austria using micro observations of Consumer Price Index (CPI) data on the one hand and a one-time survey on firms' price-setting practices on the other hand. The analysis of the micro CPI data shows that consumer prices are adjusted roughly once a year...

On December 15, 2005, the Oesterreichische Nationalbank (OeNB) held a workshop on “Price Setting and Inflation Persistence in Austria.” The aim of this workshop was to discuss the OeNB's recent research results in the field of price dynamics and inflation1 with policymakers and the...

Following the empirical breakdown of the traditional Phillips curve relationship, the baseline New Keynesian Phillips Curve (NKPC) theory was formulated in the 1990s. Unlike the traditional Phillips curve, it derives from a theoretical model that is based on microeconomic principles. It...

HICP inflation in Austria increased from below 2% in the first half of 2007 to 3.5% in December 2007, and stood at 3.1% in both January and February2 2008. As in other countries, this increase can be mostly attributed to the surge in international energy and agricultural commodity prices....

The relationship between inflation developments and aggregate demand is usually modeled with a Phillips curve. This study estimates the Phillips curve for Austria and, for the sake of comparison, for the euro area as well as for four euro area member countries. In order to test the robustness of...

This study addresses the question of whether the price adjustment process in Austria has changed since the changeover to euro notes and coins at the beginning of 2002. For this purpose, we analyze the frequency and size of price adjustments, sectoral and seasonal differences as well as the...