New evidence on consumer price rigidity in Poland

Paweł Macias, Damian Stelmasiak, Karol Szafranek and Krzysztof Makarski
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Paweł Macias: Narodowy Bank Polski

No 383, NBP Working Papers from Narodowy Bank Polski

Abstract: Nominal rigidities play a central role in monetary policy transmission, shaping how inflation and real activity respond to various shocks. Using a large longitudinal dataset of granular price data for Poland covering 2000–2024, we contribute to the literature on price stickiness across several dimensions. First, we document the price-setting behaviour in Poland. Second, we show how the process was affected by the turbulent post-COVID-19 period and Russia’s full-scale invasion of Ukraine, evaluating the importance of the intensive and extensive margins of price adjustments. Third, we distinguish between sticky and flexible sectors, revealing heterogeneity in prices response to economic variables and shocks. We also compare the price-setting process in Poland with those in the euro area and the US. Finally, we complement these analyses with simulations performed on a two-sector DSGE model. Overall, we provide new, comprehensive evidence on price rigidity and discuss its implications for monetary policy transmission.

Keywords: price rigidity; stickiness; consumer prices; micro data; inflation (search for similar items in EconPapers)
JEL-codes: D40 E31 (search for similar items in EconPapers)
Pages: 98
Date: 2026
New Economics Papers: this item is included in nep-cba, nep-cis and nep-mon
Note: We would like to thank Statistics Poland for providing access to the micro price data underlying the compilation of the CPI in Poland. We are grateful to the anonymous reviewer for careful reading and constructive comments. We also thank Mathias Klein and the participants of the internal NBP seminar for their helpful feedback and suggestions. The views expressed in this paper are solely ours and do not necessarily reflect the position of Narodowy Bank Polski. This research did not receive any specific grant from funding agencies in the public, commercial, or non-profit sectors. We declare no conflict of interest. All remaining errors are our own.
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Persistent link: https://EconPapers.repec.org/RePEc:nbp:nbpmis:383

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