Large firms drive inflation in advanced economies – BIS study
Analysis of barcode scanner data finds pricing decisions by individual companies have outsize impact
Pricing decisions by large firms drive a substantial share of overall inflation in advanced economies, research published by the Bank for International Settlements finds.
The working paper analyses data collected from barcode scanners for a total of 2.9 billion transactions across 16 advanced and emerging economies between 2005 and 2020.
The researchers find that firms drive 41% of the inflation variance over this period, and that two-thirds of this can be attributed to the 10 largest companies
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