some evidence on the importance of sticky prices mark bils department economics university rochester and nber peter j klenow stanford july 2004 abstract we examine frequency price changes for 350 categories goods services covering about 70 consumer spending based unpublished data from bls 1995 to 1997 compared with previous studies find much more frequent half lasting less than 4 3 months even excluding role temporary cuts sales that last 5 or differs dramatically across exploit this variation ask how inflation flexible in individual those displaying infrequent predictions popular models actual rates are far volatile transient particularly very grateful oleksiy kryvtsov excellent research assistance thank john greenlees david johnson walter lane providing us helpful suggestions
