Inflation affects the purchasing power of households. This paper documents large, idiosyncratic inflation differences … between households in their everyday shopping. Low-income households have experienced higher inflation in the last ten years … inflation differences within countries. Between countries, multinational retail chains not only differentiate products by …

changes does not change much with inflation and does not react much to aggregate shocks; (vi) changes in inflation are mostly … consistent with the predictions of a menu cost model in a low inflation environment where idiosyncratic shocks are a more …