Report
Transitory or Persistent? What the Frequency of Price Changes May Tell Us about Inflation
Abstract: This brief shows how distinguishing between the dynamics of frequently and infrequently adjusted prices can provide insight into the nature of inflation—whether inflation pressures are new and transitory or sustained and spreading. It breaks down the non-rent portion of the Consumer Price Index into two subindexes, one for products that change prices frequently (the flexible sector) and one for products that change prices infrequently (the sticky sector).
JEL Classification: E31; E52; E58;
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https://www.bostonfed.org/publications/current-policy-perspectives/2025/frequency-of-price-changes-and-the-nature-of-inflation.aspx
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https://www.bostonfed.org/-/media/Documents/Workingpapers/PDF/2025/cpp20250827.pdf
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Bibliographic Information
Provider: Federal Reserve Bank of Boston
Part of Series: Current Policy Perspectives
Publication Date: 2025-08-27
Number: 25-11