Price-Setting Behaviour in the United Kingdom

12 Pages Posted: 21 Dec 2008

See all articles by Jennifer V. Greenslade

Jennifer V. Greenslade

Bank of England - External MPC Unit

Miles Parker

Reserve Bank of New Zealand

Date Written: December 15, 2008

Abstract

It is important for central banks to understand how companies set prices, since price-setting behaviour plays a key role in the monetary policy transmission mechanism. Surveys of companies have been conducted in a variety of countries to shed light on this issue. Earlier this year the Bank of England asked companies who are contacts of the Bank's Agents about how they set prices. The survey adds to and updates our understanding. It indicates that the frequency with which companies change their prices varies considerably across sectors but that over the past decade a significant number have increased the frequency of price changes. Different factors influence price rises and falls but nearly half of companies change their prices within three months of an increase in costs or a fall in demand.

Suggested Citation

Greenslade, Jennifer V. and Parker, Miles Ian, Price-Setting Behaviour in the United Kingdom (December 15, 2008). Bank of England Quarterly Bulletin No. 2008 Q4, Available at SSRN: https://ssrn.com/abstract=1318229

Jennifer V. Greenslade (Contact Author)

Bank of England - External MPC Unit ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Miles Ian Parker

Reserve Bank of New Zealand ( email )

2 The Terrace
P.O. Box 2498
Wellington
New Zealand

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
53
Abstract Views
477
rank
453,163
PlumX Metrics