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New NBER research sheds light on ‘cheapflation’
Savings from price discounts partially offset by price hikes for cheaper products
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Inflation for cheaper products was higher than that for more expensive products, according to a new working paper from the National Bureau of Economic Research (NBER).
The phenomenon, termed “cheapflation” by researchers Alberto Cavallo and Oleksiy Kryvtsov, was observed in a study analysing prices of food products offered by 91 large multi-channel retailers across 10 countries from January 2018 to May 2024.
The countries sampled include Argentina, Brazil, Canada, France, Germany, Italy, the
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