Sectoral inflation and the Phillips curve: What has changed since the Great Recession?

Maria Luengo-Prado, Nikhil Rao and Viacheslav Sheremirov

Economics Letters, 2018, vol. 172, issue C, 63-68

Abstract: Using sectoral data at a medium level of aggregation, we find that disaggregated inflation rates became less responsive to aggregate unemployment around 2009–2010. The slopes of the disaggregated Phillips curves diminished in many sectors, including housing and some services. We also document a decrease in sectoral inflation persistence, suggesting an increase in the weight of the forward-looking inflation expectation component and a decrease in the weight of the backward-looking component.

Keywords: Disaggregated price indices; Inflation persistence; Phillips curve (search for similar items in EconPapers)
JEL-codes: E24 E31 E32 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Working Paper: Sectoral inflation and the Phillips curve: what has changed since the Great Recession? (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:172:y:2018:i:c:p:63-68

DOI: 10.1016/j.econlet.2018.08.016

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