<div class="csl-bib-body">
<div class="csl-entry">Budianto, F. (2024, December 17). <i>Shrinkflation</i> [Conference Presentation]. 2024 European Winter Meeting of the Econometric Society, Palma de Mallorca, Spain.</div>
</div>
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dc.identifier.uri
http://hdl.handle.net/20.500.12708/206449
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dc.description.abstract
This paper studies the macroeconomic relevance of product size adjustment, i.e., changes in the weight or volume of consumer goods. I establish several facts from U.K. CPI price microdata from 2012-2023: (i) Product size is relevant for around 35% of the consumption basket. (ii) Each month, up to 0.7% of goods in the CPI undergo size changes, with considerable variation across sectors and products (e.g. up to 3% in the Food sector or up to 60% for products like chocolate). (ii) Around 80% of all adjustments are reductions in product size, and 90% of these reductions are “downgrades”, i.e., raise the unit price. (iii) The frequencies of size reductions and downgrades are strongly procyclical, moving positively with CPI and PPI inflation and negatively with the unemployment rate. Conversely, size increases and upgrades are mostly acyclical. (iv) The frequencies of nominal price and product size adjustment are largely unrelated. These facts highlight the systematic use of “shrinkflation” – whereby unit prices are raised through product size reductions – as a margin of adjustment in response to aggregate fluctuations.
en
dc.description.sponsorship
Österreichische Nationalbank, Jubiläumsfonds
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dc.description.sponsorship
Österreichische Nationalbank, Jubiläumsfonds
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dc.language.iso
en
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dc.subject
inflation
en
dc.subject
aggregate price dynamics
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dc.subject
quantity adjustment
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dc.title
Shrinkflation
de
dc.type
Presentation
en
dc.type
Vortrag
de
dc.relation.grantno
18611
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dc.relation.grantno
18915
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dc.type.category
Conference Presentation
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tuw.project.title
Should central banks modify their inflation targeting framework when agents are boundedly rational?
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tuw.project.title
Die Rolle der sich verändernden Marktstruktur für die aktuelle Inflationsdynamik und Geldpolitik
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tuw.researchTopic.id
A4
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tuw.researchTopic.id
C6
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tuw.researchTopic.name
Mathematical Methods in Economics
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tuw.researchTopic.name
Modeling and Simulation
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tuw.researchTopic.value
70
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tuw.researchTopic.value
30
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tuw.publication.orgunit
E105-03 - Forschungsbereich Ökonomie
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tuw.event.name
2024 European Winter Meeting of the Econometric Society
en
tuw.event.startdate
15-12-2024
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tuw.event.enddate
18-12-2024
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tuw.event.online
On Site
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tuw.event.type
Event for scientific audience
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tuw.event.place
Palma de Mallorca
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tuw.event.country
ES
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tuw.event.presenter
Budianto, Flora
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wb.sciencebranch
Wirtschaftswissenschaften
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wb.sciencebranch.oefos
5020
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wb.sciencebranch.value
100
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item.languageiso639-1
en
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item.openairetype
conference paper not in proceedings
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item.grantfulltext
none
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item.fulltext
no Fulltext
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item.cerifentitytype
Publications
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item.openairecristype
http://purl.org/coar/resource_type/c_18cp
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crisitem.author.dept
E105-03 - Forschungsbereich Ökonomie
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crisitem.author.parentorg
E105 - Institut für Stochastik und Wirtschaftsmathematik
