E21 - Consumption; Saving; Wealth

• Price Discounts and Cheapflation During the Post-Pandemic Inflation Surge

  Staff Working Paper 2024-31 Alberto Cavallo, Oleksiy Kryvtsov

  We study how price variation within a store changes with inflation, and whether households exploit these changes to reduce the burden of inflation. We find that price changes from discounts mitigated the inflation burden while cheapflation exacerbated it.

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices, Inflation: costs and benefits, Market structure and pricing JEL Code(s): E, E2, E21, E3, E30, E31, L, L8, L81