Free Trial

BoC Box On Normalization In Firms’ Price Setting Behaviour

CANADA
  • The MPR has a box on greater details behind firms’ price-setting behaviour, one of the Bank’s longstanding explicit areas of focus.
  • Rather than focus on a survey-based approach, they analyse the behaviour of prices of ~100k individual goods and services and calculate relative frequency of price changes.
  • “The relative frequency of price changes has declined significantly from its peak during the pandemic, nearing historical average levels (Chart 3-B). Further normalization appears possible, however. This is most evident for goods excluding food and energy, the category with the largest remaining gap relative to its historical average”
  • See Box 3 on pg 23: https://static.bankofcanada.ca/uploads/pdf/mpr-2024-04-10.pdf

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.