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 … by a mildly state-dependent price-setting model, and they jointly explain over a third of the difference in food-inflation …
