In this paper, we examine the extent to which monetary policy should respond to movements in sectoral inflation rates … for different responses to inflation in different sectors outperforms a rule which just targets aggregate CPI, as does a … rule that responds only to non food and energy inflation. However, we find that the optimal sectoral rule only leads to a …

We apply classical econometric method to characterize the dynamic behavior of the quarter-on-quarter inflation over the … inflation series and as well as for the consumer price inflation at representative product groups level, taking into account the … influence of structural breaks in the mean of inflation on the level of persistence. We find strong evidence for a break in the …

Whittle estimation method, the research examines the longmemory properties of headline inflation through monthly data from … January 1996 to January 2023. The study expands upon existing knowledge of inflation persistence by exploring its changes and … the various patterns of inflation persistence in Europe. The findings reveal significant differences in the persistence of …

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 …