Conference paper Open Access

Inflation and Price Dispersion: Evidence from the UK CPI Micro Data

Huynh, Kim P.; Chu, Ba M.; Jacho-Chavez, David T.; Kryvtsov, Oleksiy; Shane Wood

We explore the relation between inflation and price dispersion using micro-level consumer prices from the United Kingdom’s Office for National Statistics. We find that on aggregate there is a positive relationship. However, the correlation between inflation and price dispersion can be positive or negative depending on the level stratification i.e. the type of good or the region where the good is sold. 

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